Sittings · Compare
What changed
PR_CNS_Recastingam
Symbols for procedures
* Consultation procedure
*** Consent procedure
***I Ordinary legislative procedure (first reading)
***II Ordinary legislative procedure (second reading)
***III Ordinary legislative procedure (third reading)
(The type of procedure depends on the legal basis proposed by the draft act.)
Amendments to a draft act
Amendments by Parliament set out in two columns
Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.
The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.
Amendments by Parliament in the form of a consolidated text
New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced.
By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted.
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a Council directive on the structure and rates of excise duty applied to tobacco and tobacco related products (recast)
(COM(2025)0580 – C100207/2025 – 2025/0580(CNS))
(Special legislative procedure – consultation – recast)
– having regard to the Commission proposal to the Council (COM(2025)0580),
– having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C100207/2025),
– having regard to the reasoned opinion submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Italian Chamber of Deputies, asserting that the draft legislative act does not comply with the principle of subsidiarity,
– having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts,
– having regard to the letter of 11 December 2025 from the Committee on Legal Affairs to the Committee on Economic and Monetary Affairs in accordance with Rule 113(3) of its Rules of Procedure,
– having regard to Rules 113 and 84 of its Rules of Procedure,
– having regard to the report of the Committee on Economic and Monetary Affairs (A100000/2026),
A. whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the Commission proposal does not include any substantive amendments other than those identified as such in the proposal and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance;
1. Approves the Commission proposal as adapted to the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission and as amended below;
2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;
3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;
4. Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;
5. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1
Proposal for a directive
Title 1
Text proposed by the Commission
Amendment
Proposal for a
Proposal for a
COUNCIL DIRECTIVE
COUNCIL DIRECTIVE
on the structure and rates of excise duty applied to tobacco and tobacco related products (recast)
on the structure and rates of excise duty applied to raw tobacco, manufactured tobacco and tobacco related products (recast)
Or. en
Justification
The European Commission decided to apply the Excise Movement and Control System (EMCS) to raw tobacco and the rapporteur agrees with this approach. The Directive now deals with not only manufactured tobacco as before, but newly also with raw tobacco. The rapporteur therefore considers it appropriate to slightly amend the title of the proposal so that it contains the words „raw tobacco“.
Amendment 2
Proposal for a directive
Citation 5
Text proposed by the Commission
Amendment
Having regard to the opinion of the European Economic and Social Committee,
Having regard to the opinion of the European Economic and Social Committee1a,
____________
1a Opinion of 18 February 2026 (not yet published in the Official Journal).
Or. en
Justification
The rapporteur wanted to formally take note of the opinion of the European Economic and Social Committee that was adopted recently.
Amendment 3
Proposal for a directive
Recital 2
Text proposed by the Commission
Amendment
(2) Since the adoption of Directive 2011/64/EU, the tobacco market has changed significantly. New products functioning as substitutes for manufactured tobacco and containing tobacco or nicotine have been placed on the market. In response, Member States have introduced different national measures as regards those substitutes which distort competition and undermine the proper functioning of the internal market. In the interest of uniform and fair taxation those substitutes for manufactured tobacco should be subject to a harmonised excise duty structure and harmonised minimum excise duty rates in the Union. This Directive should not harmonise taxation rules on tobacco for oral use, prohibited from being placed on the market in accordance with Article 17 of Directive 2014/40/EU of the European Parliament and of the Council. For clarity, this Directive should not harmonise taxation rules on tobacco for oral use placed on the market of a Member State in accordance with Article 151 of the Act of Accession of Austria, Finland and Sweden.
(2) Since the adoption of Directive 2011/64/EU, the tobacco market has changed significantly. New products functioning as substitutes for manufactured tobacco and containing tobacco or nicotine have been placed on the market. In response, Member States have introduced different national measures as regards those substitutes which pose a challenge to the proper functioning of the internal market. In the interest of uniform and fair taxation those substitutes for manufactured tobacco should be subject to a harmonised excise duty structure and harmonised minimum excise duty rates in the Union. This Directive should not harmonise taxation rules on tobacco for oral use, prohibited from being placed on the market in accordance with Article 17 of Directive 2014/40/EU of the European Parliament and of the Council. For clarity, this Directive should not harmonise taxation rules on tobacco for oral use placed on the market of a Member State in accordance with Article 151 of the Act of Accession of Austria, Finland and Sweden.
Or. en
Amendment 4
Proposal for a directive
Recital 3
Text proposed by the Commission
Amendment
(3) It is necessary to ensure that the Union’s fiscal legislation on tobacco and tobacco related products continues to ensure the proper functioning of the internal market and, at the same time, a high level of human health protection, as required by Article 168 of the Treaty on the Functioning of the European Union, bearing in mind that tobacco and tobacco related products can cause serious harm to health , that Europe’s Beating Cancer Plan2 set the goal of reaching a tobacco-free Europe and that the Union is Party to the World Health Organization’s Framework Convention on Tobacco Control . To achieve this twin objective the EU and the Member States should step up their efforts to fight illicit tobacco trade, notably illicit imports of tobacco and related products from third countries3 . New products (liquids for e-cigarettes, other manufactured tobacco, nicotine pouches and other nicotine products) have increasing popularity, especially among young people, and besides the intrinsic public health risk these products represent, they also have the potential of opening the way towards conventional smoking.
(3) It is necessary to ensure that the Union’s fiscal legislation on tobacco and tobacco related products continues to ensure the proper functioning of the internal market and, at the same time, a high level of human health protection, as required by Article 168 of the Treaty on the Functioning of the European Union, bearing in mind that tobacco and tobacco related products can cause serious harm to health , that Europe’s Beating Cancer Plan2 set the goal of reaching a tobacco-free Europe and that the Union is Party to the World Health Organization’s Framework Convention on Tobacco Control . To achieve this twin objective the EU and the Member States should step up their efforts to fight illicit tobacco trade, notably illicit imports of tobacco and related products from third countries3 . New products (liquids for e-cigarettes, other manufactured tobacco, nicotine pouches and other nicotine products) have increasing popularity, especially among young people, and besides the intrinsic public health risk these products represent, they also have the potential of opening the way towards conventional smoking. On the other hand, studies3a show that new products are generally less harmful than traditional combustible cigarettes and can help smokers transition away from them more smoothly.
__________________
__________________
2 Europe's Beating Cancer Plan, COM(2021) 44 final.
2 Europe's Beating Cancer Plan, COM(2021) 44 final.
3 In the case of Cyprus, the “green line” as per Council Regulation (EC) No 866/2004 of 29 April 2004 on a regime under Article 2 of Protocol 10 to the Act of Accession (ELI: http://data.europa.eu/eli/reg/2004/866/2015-08-31)
3 In the case of Cyprus, the “green line” as per Council Regulation (EC) No 866/2004 of 29 April 2004 on a regime under Article 2 of Protocol 10 to the Act of Accession (ELI: http://data.europa.eu/eli/reg/2004/866/2015-08-31)
3a Ambildhok, Kadambari A et al. Assessing the Health Impacts of Heated Tobacco Products Compared to Traditional Tobacco Use: A Systematic Review of Current Evidence. Cureus 17(10). DOI: 10.7759/cureus.95166
Or. en
Amendment 5
Proposal for a directive
Recital 3 a (new)
Text proposed by the Commission
Amendment
(3a) Currently, the cost of living is rising across the Union. When setting new minimum levels of taxation for tobacco products, it is essential to consider the regressive nature of tobacco taxes and the disproportionate financial burden of tobacco use on low-income population groups. Given the higher prevalence of smoking among lower-income households and the significantly larger share of their earnings spent on tobacco products, they are much more affected by tax increases than higher-income households.
Or. en
Amendment 6
Proposal for a directive
Recital 6
Text proposed by the Commission
Amendment
(6) The various types of manufactured tobacco and tobacco related products , distinguished by their characteristics and by the way in which they are used, should be defined.
(6) The various types of manufactured tobacco and tobacco related products, distinguished by their characteristics, by their differing health risks and by the way in which they are used, should be defined.
Or. en
Amendment 7
Proposal for a directive
Recital 8
Text proposed by the Commission
Amendment
(8) A distinction needs to be made between fine-cut tobacco for the rolling of cigarettes, other smoking tobacco , waterpipe tobacco and heated tobacco to improve legal certainty and fight against fraud. A distinction also needs to be made between cigars and cigarillos to ensure legal consistency and allow Member States to adapt taxation regimes where necessary to avoid tax-induced substitution.
(8) A distinction needs to be made between fine-cut tobacco for the rolling of cigarettes, other smoking tobacco , waterpipe tobacco and heated tobacco to improve legal certainty and fight against fraud.
Or. en
Amendment 8
Proposal for a directive
Recital 9
Text proposed by the Commission
Amendment
(9) In the interests of uniform and fair taxation, a definition of cigarettes, cigars, cigarillos , fine-cut tobacco for the rolling of cigarettes, other smoking tobacco , waterpipe tobacco, heated tobacco and other manufactured tobacco should be laid down so that rolls of tobacco which according to their length can be considered as two cigarettes or more are treated as two cigarettes or more , a cigar of a maximum weight of 3 g each is treated as a cigarillo, smoking tobacco which is similar in many respects to fine-cut tobacco for the rolling of cigarettes is treated as fine-cut tobacco , tobacco which can be used in a waterpipe is treated as waterpipe tobacco, tobacco which is heated or otherwise activated by chemical reaction is treated as heated tobacco, other tobacco prepared and intended for human consumption is treated as other manufactured tobacco, and tobacco refuse is clearly defined.
(9) In the interests of uniform and fair taxation, a definition of cigarettes, cigars and cigarillos , fine-cut tobacco for the rolling of cigarettes, other smoking tobacco , waterpipe tobacco, heated tobacco and other manufactured tobacco should be laid down so that rolls of tobacco which according to their length can be considered as two cigarettes or more are treated as two cigarettes or more , smoking tobacco which is similar in many respects to fine-cut tobacco for the rolling of cigarettes is treated as fine-cut tobacco , tobacco which can be used in a waterpipe is treated as waterpipe tobacco, tobacco which is heated or otherwise activated by chemical reaction is treated as heated tobacco, other tobacco prepared and intended for human consumption is treated as other manufactured tobacco, and tobacco refuse is clearly defined.
Or. en
Amendment 9
Proposal for a directive
Recital 12
Text proposed by the Commission
Amendment
(12) For the proper functioning of the internal market, it is necessary to establish minimum excise duties for all categories of manufactured tobacco and tobacco related products. Different minimum excise duties should be established for each category of tobacco and tobacco related product to reflect differences in product characteristics and how they are used.
(12) For the proper functioning of the internal market, it is necessary to establish minimum excise duties for all categories of manufactured tobacco and tobacco related products. Different minimum excise duties should be established for each category of tobacco and tobacco related product to reflect differences in product characteristics, health risks and how the products are used.
Or. en
Amendment 10
Proposal for a directive
Recital 13
Text proposed by the Commission
Amendment
(13) To avoid its obsolescence over time, the minimum Union rate of excise duty for each product category should be updated every three years on the basis of changes in the Union harmonised index of consumer prices, as published by Eurostat.
(13) To avoid its obsolescence over time, the minimum Union rate of excise duty for each product category should be updated every three years on the basis of changes in the Union harmonised index of consumer prices excluding energy and unprocessed food (core inflation), as published by Eurostat. The adjustment should be based on core inflation rather than headline inflation in order to avoid potential excessive volatility caused by significant price increases of more fluctuating goods such as energy and food. Moreover, a maximum adjustment cap of 12 % should ensure better predictability for national tax authorities and the tobacco products market. The inflation adjustment mechanism should only apply after the end of the transitional period to decrease the level of complexity for Member States.
Or. en
Amendment 11
Proposal for a directive
Recital 18
Text proposed by the Commission
Amendment
(18) A certain degree of convergence would help ensure a high level of protection for human health. The level of taxation is a major factor in the price of tobacco and tobacco related products, which in turn influences consumers’ consumption habits. Fraud and smuggling undermine tax induced price levels, in particular of cigarettes and fine-cut tobacco for the rolling of cigarettes, and thus jeopardise the achievement of tobacco control and health protection objectives.
(18) A certain degree of convergence would help ensure a high level of protection for human health. The level of taxation is a major factor in the price of tobacco and tobacco related products, which in turn influences consumers’ consumption habits. Fraud and smuggling undermine tax induced price levels, in particular of cigarettes and fine-cut tobacco for the rolling of cigarettes, and thus jeopardise the achievement of tobacco control and health protection objectives. It is therefore of the utmost importance to keep in mind the impact of new minimum excise duty rates on illicit trade and the growth of the black market. Delivering on public health objectives while simultaneously not incentivising consumers to search for cheaper products on the black market is a key objective. Minimum levels of taxation should be determined in an adequate and careful manner in order to avoid a situation where, due to significant increases in minimum rates, consumers choose to obtain tobacco products from the black market, leading to potential negative consequences on tax revenue and an unchanged public health situation.
Or. en
Amendment 12
Proposal for a directive
Recital 23
Text proposed by the Commission
Amendment
(23) It is necessary to bring the minimum levels for fine-cut tobacco for the rolling of cigarettes closer to the minimum levels applicable to cigarettes, so as to better take account of the degree of competition existing between the two products, reflected in consumption patterns observed, as well as their equally harmful character. Similarly, the increase of EU minima for cigars, cigarillos and other smoking tobacco aims to reduce the gap with the rate for cigarettes to achieve a progressive convergence between products and minimise the risk of cross-product substitution .
(23) It is necessary to bring the minimum levels for fine-cut tobacco for the rolling of cigarettes closer to the minimum levels applicable to cigarettes, so as to better take account of the degree of competition existing between the two products, reflected in consumption patterns observed, as well as their equally harmful character.
Or. en
Justification
We do not consider cigars/cigarillos to be potential substitutes for cigarettes. Both product groups are characterized by very different patterns of consumption (frequency, occasion), consumer demography, addiction rates etc.
Amendment 13
Proposal for a directive
Recital 23 a (new)
Text proposed by the Commission
Amendment
(23a) As regards cigars and cigarillos, such products form a distinct and marginal market segment with a small overall share, limited substitution potential with cigarettes due to different consumer profiles and consumption patterns, and are predominantly produced by small and medium-sized enterprises (SMEs) as well as family-owned businesses deeply rooted in regional economies. To preserve proportionality and avoid undue harm to this niche category, minimum excise duties should explicitly reflect these unique characteristics, such as low market volume, occasional rather than daily use, and minimal cross-product substitution, while maintaining a structurally and materially differentiated tax treatment from cigarettes.
Or. en
Amendment 14
Proposal for a directive
Recital 23 b (new)
Text proposed by the Commission
Amendment
(23b) Given the specificities of the cigar and cigarillo market, the Commission should, by ... [two years after the entry into force of this Directive], assess the impact of the new minimum excise duty rates applicable to cigars and cigarillos on SMEs and family-owned manufacturers, regional employment and supply chains, and substitution patterns. Where the assessment shows disproportionate impacts on SMEs, family-owned manufacturers or regional employment, the Commission should submit a legislative proposal to adjust the applicable minimum rates or the structure of those rates so as to ensure proportionality and to maintain an appropriate differential vis-à-vis cigarettes.
Or. en
Amendment 15
Proposal for a directive
Recital 25
Text proposed by the Commission
Amendment
(25) To capture the heterogeneity in current formats of heated tobacco, and to anticipate future formats, the setting of an overall minimum excise duty expressed as a percentage, as an amount per kilogram or for a given number of items is the most appropriate for the functioning of the internal market. Thus, the overall minimum excise duty should be expressed as an amount per kilogram or an amount for a given number of items depending on the type of heated tobacco product concerned.
(25) To capture the heterogeneity in current formats of heated tobacco, and to anticipate future formats, the setting of an overall minimum excise duty expressed as a percentage, or as an amount per kilogram or for a given number of items is the most appropriate for the functioning of the internal market.
Or. en
Amendment 16
Proposal for a directive
Recital 27
Text proposed by the Commission
Amendment
(27) As regards liquids for electronic cigarettes, all those liquids should be subject to a minimum tax level, with a higher rate for liquids with a concentration of nicotine higher than 15 mg/ml to reflect the variety of products and prevent tax avoidance through ‘do-it-yourself’ mixtures.
(27) As regards liquids for electronic cigarettes, all those liquids should be subject to a minimum tax level, regardless of whether they contain nicotine. Not having to verify the nicotine content should make enforcement and supervision easier for national tax authorities. According to a recent European School Survey Project on Alcohol and Other Drugs, nearly half of European students have tried electronic cigarettes at least once in their lifetime and 22 % of students had used it in the past month.1a Taxation policy should therefore reflect the rising appeal of electronic cigarettes to young people.
__________________
1a European Union Drugs Agency. European School Survey Project on Alcohol and Other Drugs (ESPAD). euda.europa.eu. p. 18. Available from: https://www.euda.europa.eu/publications/data-factsheets/espad-2024-key-findings_en
Or. en
Amendment 17
Proposal for a directive
Recital 29
Text proposed by the Commission
Amendment
(29) Transitional periods of four years for cigars, cigarillos, waterpipe tobacco, heated tobacco, other smoking tobacco, other manufactured tobacco, nicotine pouches and other nicotine products with excise duty increase after two years should be laid down to allow Member States to adapt smoothly to the levels of the overall excise duty, thus limiting possible side effects.
(29) Transitional periods of five years for cigars, cigarillos, waterpipe tobacco, heated tobacco, other smoking tobacco, other manufactured tobacco, nicotine pouches and other nicotine products with excise duty increase after three years should be laid down to allow Member States to adapt smoothly to the levels of the overall excise duty, thus limiting possible side effects.
Or. en
Amendment 18
Proposal for a directive
Recital 34
Text proposed by the Commission
Amendment
(34) For reasons of legal clarity and transparency, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to amend the minimum Union rates set by this Directive to reflect changes in harmonised index of consumer prices. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making4 . In particular, to ensure equal participation in the preparation of delegated acts, the Council receives all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
(34) For reasons of legal clarity and transparency, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to amend the minimum Union rates set by this Directive to reflect changes in harmonised index of consumer prices excluding energy and unprocessed food (core inflation). It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making4 . In particular, to ensure equal participation in the preparation of delegated acts, the Council receives all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
__________________
__________________
4 OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj.
4 OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj.
Or. en
Amendment 19
Proposal for a directive
Recital 36
Text proposed by the Commission
Amendment
(36) Minimum levels for new tobacco and nicotine products should be set with the objective of reducing existing tax differentials while taking into account current and future market developments. The Commission should review this directive, taking into account the future revision of Directive 2014/40/EU (Tobacco Products Directive), and consider the possible equalisation of the taxation levels for different product categories, increasing the minimum levels of taxation for heated tobacco and tobacco related products referred to in Articles 20(2)(f) and 22 accordingly.
deleted
Or. en
Justification
In our opinion, it is not sound legal drafting to premise in the current recast what decisions the Commission should take in the future. Moreover, it is unclear why equalisation of the taxation levels for different product categories is needed and desirable in the first place.
Amendment 20
Proposal for a directive
Article 2 – paragraph 1 – point b
Text proposed by the Commission
Amendment
(b) cigars;
(b) cigars and cigarillos;
Or. en
Amendment 21
Proposal for a directive
Article 2 – paragraph 1 – point c
Text proposed by the Commission
Amendment
(c) cigarillos;
deleted
Or. en
Amendment 22
Proposal for a directive
Article 2 – paragraph 1 – point d – point i a (new)
Text proposed by the Commission
Amendment
(ia) waterpipe tobacco
Or. en
Justification
For explanation see the justification for amendment 27.
Amendment 23
Proposal for a directive
Article 2 – paragraph 1 – point e
Text proposed by the Commission
Amendment
(e) waterpipe tobacco;
deleted
Or. en
Justification
For explanation see the justification for amendment 27.
Amendment 24
Proposal for a directive
Article 4 – paragraph 2
Text proposed by the Commission
Amendment
2. Cigarillos are cigars of a maximum weight of 3 g each.
deleted
Or. en
Justification
This paragraph became obsolete due to the deletion of the split of cigars and cigarillos, which the Commission proposed. The rapporteur does not see merit in splitting cigars and cigarillos as they are taxed equally anyway. The rapporteur proposes to have one single „cigars and cigarillos“ category and therefore the maximum weight of 3 g is not necessary anymore.
Amendment 25
Proposal for a directive
Article 5 – paragraph 1 – point b
Text proposed by the Commission
Amendment
(b) tobacco refuse put up for retail sale which does not fall under Article 3 and Article 4(1) and which can be smoked. For the purpose of this Article, tobacco refuse shall be deemed to be remnants of tobacco leaves and by-products obtained from tobacco processing or the manufacture of tobacco products.
(b) tobacco refuse put up for retail sale which does not fall under Articles 3(1), 4(1), 7(1) and 8 and which can be smoked. For the purpose of this Article, tobacco refuse shall be deemed to be remnants of tobacco leaves and by-products obtained from tobacco processing or the manufacture of tobacco products.
Or. en
Justification
This is a technical clarification specifying that tobacco refuse can be considered smoking tobacco only if it does not fall under the definitions of cigarettes, cigars/cigarillos, heated tobacco or other manufactured tobacco.
Amendment 26
Proposal for a directive
Article 5 – paragraph 2 a (new)
Text proposed by the Commission
Amendment
2a. Smoking tobacco which is sold or intended to be sold for use in a waterpipe for the production of emissions which are passed through a liquid before inhalation by the users shall be deemed to be ‘waterpipe tobacco’.
Or. en
Justification
The definition of ‘waterpipe tobacco’ has been revised and relocated. Specifically, the word “can” has been replaced with “sold or intended to be sold” to close an existing loophole explained below. Having ‘waterpipe tobacco’ as a separate category (Commission version) creates a potential issue: virtually all smoking tobacco could be classified as waterpipe tobacco whenever it is physically possible to use it in a waterpipe, regardless of the manufacturer’s intended purpose. Since the proposed minimum tax rate for waterpipe tobacco is lower than the rate for other smoking tobacco and for fine-cut tobacco for the rolling of cigarettes, this creates a significant risk for tax administrations. Manufacturers and importers could claim that their products “can” be used in a waterpipe — even when this is not their intended or primary use — and thereby qualify for the lower tax rate. Therefore, we adapted the definition and put waterpipe tobacco under ‘smoking tobacco´ to close this loophole.
Amendment 27
Proposal for a directive
Article 6
Text proposed by the Commission
Amendment
Article 6
deleted
1. For the purposes of this Directive, ‘waterpipe tobacco’ means tobacco which can be used in a waterpipe for the production of emissions which are passed through a liquid before inhalation by the users.
2. Products consisting in whole or in part of substances other than tobacco but otherwise falling within the definition set out in paragraph 1 shall be treated as waterpipe tobacco.
3. Products which fall within the definitions set out in both paragraphs 1 and 2 of this Article and in Article 5 and can be used both via a waterpipe as waterpipe tobacco and as smoking tobacco shall be treated as smoking tobacco.
4. Products which fall within the definitions set out in both paragraphs 1 and 2 of this Article and in Article 7 and can be used both via a waterpipe as waterpipe tobacco and as heated tobacco shall be treated as heated tobacco.
Or. en
Justification
See justification for amendment 16 (moved and adjusted definition of waterpipe tobacco).
Amendment 28
Proposal for a directive
Article 7 – paragraph 1
Text proposed by the Commission
Amendment
1. For the purposes of this Directive, ‘heated tobacco’ means tobacco that is heated or otherwise activated by chemical reaction or some other means to produce an emission containing nicotine or other chemicals, intended for inhalation by users, other than via a waterpipe as referred to in Article 6(1).
1. For the purposes of this Directive, ‘heated tobacco’ means tobacco that is heated or otherwise activated by chemical reaction or some other means to produce an emission containing nicotine or other chemicals, intended for inhalation by users, other than via a waterpipe as referred to in Article 5(2a).
Or. en
Amendment 29
Proposal for a directive
Article 7 – paragraph 1 a (new)
Text proposed by the Commission
Amendment
1a. If heated tobacco is taxed per item in accordance with Article 20(1), point (b), an item of heated tobacco referred to in paragraph 1 of this Article shall, for excise duty purposes, be considered to be two items where the tobacco content is higher than 0,45 grams but not higher than 0,75 grams, to be three items where the tobacco content is higher than 0,75 grams but not higher than 1,05 grams, and to be one additional item for each 0,3 grams of tobacco content starting at 1,05 grams.
Or. en
Justification
We want to make sure that the new minimum excise duty rates are not circumvented by making the heated tobacco "sticks" or items larger/heavier and still taxing them as one item. The Commission's impact assessment mentions that the average weight of a heated tobacco stick is around 0.3g (page 101), we therefore established the following thresholds to ensure fair taxation of potential larger sticks.
Amendment 30
Proposal for a directive
Article 9 – paragraph 2
Text proposed by the Commission
Amendment
2. For the purposes of this Directive, ‘electronic cigarette’ means a product that can be used for consumption of vapour via a mouth piece, or any component of that product, including a cartridge, a tank and a device without cartridge or tank and that can be disposable or refillable by means of a refill container or a tank, or rechargeable with single use cartridges.
2. For the purposes of this Directive, ‘electronic cigarette’ means a product that can be used for consumption of vapour, or any component of that product that can be disposable or refillable, or rechargeable.
Or. en
Justification
The objective here is to close a potential loophole and to make the definition as broad as possible.
Amendment 31
Proposal for a directive
Article 10 – paragraph 1
Text proposed by the Commission
Amendment
1. For the purposes of this Directive, ‘nicotine pouches’ means products containing nicotine intended for oral intake which are mixed with vegetable fibres or equivalent substrate, which are presented in sachet portions or porous sachets or in an equivalent format and which do not contain tobacco.
1. For the purposes of this Directive, ‘nicotine pouches’ means products containing nicotine intended for oral intake and vegetable fibres or equivalent substrate, which are presented in sachet portions or porous sachets or in an equivalent format and which do not contain tobacco.
Or. en
Justification
The objective is again to close a potential loophole. The producer could theoretically not mix the ingredients and instruct the consumer to mix them just before the use, thus escaping the definition of nicotine pouches as a taxable product. We therefore suggest to delete the reference to the mixing.
Amendment 32
Proposal for a directive
Article 12 – paragraph 2
Text proposed by the Commission
Amendment
2. The Union rate used to determine the minimum tax level of a product, as provided for in Article 16, Article 20(2) and Article 22(2) shall be adjusted by increasing or decreasing the base amount in euro by the percentage change over the preceding 3 calendar years in the all-items annual Union average value of the harmonised index of consumer prices as published by Eurostat.
2. The Union rate used to determine the minimum tax level of a product, as provided for in Article 16, Article 20(2) and Article 22(2) shall be adjusted by increasing or decreasing the base amount in euro by the percentage change over the preceding 3 calendar years in the all-items annual Union average value of the harmonised index of consumer prices excluding energy and unprocessed food as published by Eurostat. The Union rate used to determine the minimum tax level of a product shall not be adjusted by more than 12 %.
Or. en
Justification
For details regarding core inflation see recital 13. The cap of the maximum adjustment by 12 % aims to make the adaptations of the minimum rates more predictable and less volatile.
Amendment 33
Proposal for a directive
Article 12 – paragraph 3
Text proposed by the Commission
Amendment
3. The part of minimum rate expressed as an amount either per kilogram, per millilitre, or per a given number of items applicable in a Member State shall be the sum of one third of the Union rate for the corresponding category multiplied by the price level index divided by one hundred plus two thirds of the Union rate for the corresponding category. Price level index means the index published by Eurostat expressing the price level of a given Member State for actual individual consumption relative to the weighted Union average. Member States shall use the price level index of the year prior to the year of adjustment.
3. The part of minimum rate expressed as an amount either per kilogram, per millilitre, or per a given number of items applicable in a Member State shall be the sum of one half of the Union rate for the corresponding category multiplied by the price level index divided by one hundred plus one half of the Union rate for the corresponding category. Price level index means the index published by Eurostat expressing the price level of a given Member State for actual individual consumption relative to the weighted Union average. Member States shall use the price level index of the year prior to the year of adjustment.
Or. en
Justification
We believe that the price level index is a useful tool for making the minimum rates fairer across Member States with very diverse economic situations. Therefore, it should be enhanced and its weight in the calculation of the final minimum rate should be increased from one third to one half.
Amendment 34
Proposal for a directive
Article 12 – paragraph 5
Text proposed by the Commission
Amendment
5. The Commission is empowered to adopt delegated acts in accordance with Article 31 to amend the minimum Union rates laid down in Article 16, Article 20(2) and Article 22(2) in such a manner that they reflect the adjustment made in accordance with paragraph 2 of this Article.
5. The Commission is empowered to adopt each year by 28 February delegated acts in accordance with Article 31 to amend the minimum Union rates laid down in Article 16, Article 20(2) and Article 22(2) in such a manner that they reflect the adjustment made in accordance with paragraph 2 of this Article. Member States shall apply the new minimum tax levels from 1 January of the year following that of the adoption of the respective delegated act.
Or. en
Amendment 35
Proposal for a directive
Article 12 – paragraph 6
Text proposed by the Commission
Amendment
6. Paragraphs 1-5 of this article shall not apply to the transitional periods established in Article 20(4) and (5) and Article 22(3) and (4).
6. Paragraph 2 shall apply from 1 January 2036.
Or. en
Justification
The indexation of minimum tax rates at EU level is a completely new element that futureproofs the Directive but which also adds complexity for Member States' tax authorities. Therefore, we decided to apply the provision on indexation (par. 2) after the end of the transitional period and subsequent 3 calendar year period.
Amendment 36
Proposal for a directive
Article 16 – paragraph 1
Text proposed by the Commission
Amendment
The overall excise duty on cigarettes shall represent at least 63 % of the weighted average retail selling price of cigarettes released for consumption. That excise duty shall not be less than the Union rate of EUR 215 per 1000 cigarettes, adjusted in accordance with Article 12, irrespective of the weighted average retail selling price.
The overall excise duty on cigarettes shall represent at least 60 % of the weighted average retail selling price of cigarettes released for consumption. That excise duty shall not be less than the Union rate of EUR 215 per 1000 cigarettes, adjusted in accordance with Article 12, irrespective of the weighted average retail selling price.
Or. en
Justification
For some Member States, the 63 % objective is not achievable. Given the lack of transitional period for cigarettes, it is necessary to decrease the percentage to 60 %.
Amendment 37
Proposal for a directive
Article 16 – paragraph 2
Text proposed by the Commission
Amendment
However, Member States which levy an excise duty of at least the Union rate of EUR 274 per 1000 cigarettes, adjusted in accordance with Article 12, on the basis of the weighted average retail selling price need not to comply with the requirement of an overall excise duty of 63 % of the weighted average retail selling price of cigarettes released for consumption % requirement set out in the first subparagraph of this Article.
However, Member States which levy an excise duty of at least the Union rate of EUR 274 per 1000 cigarettes, adjusted in accordance with Article 12, on the basis of the weighted average retail selling price need not to comply with the requirement of an overall excise duty of 60 % of the weighted average retail selling price of cigarettes released for consumption requirement set out in the first subparagraph of this Article.
Or. en
Amendment 38
Proposal for a directive
Article 19 – paragraph 1 – point a
Text proposed by the Commission
Amendment
(a) cigars
(a) cigars and cigarillos;
Or. en
Amendment 39
Proposal for a directive
Article 19 – paragraph 1 – point b
Text proposed by the Commission
Amendment
(b) cigarillos;
deleted
Or. en
Amendment 40
Proposal for a directive
Article 19 – paragraph 1 – point c
Text proposed by the Commission
Amendment
(c) fine-cut tobacco for the rolling of cigarettes;
deleted
Or. en
Amendment 41
Proposal for a directive
Article 19 – paragraph 1 – point d
Text proposed by the Commission
Amendment
(d) other smoking tobacco;
(d) smoking tobacco, including:
(i) fine-cut tobacco for the rolling of cigarettes;
(ii) waterpipe tobacco;
(iii) other smoking tobacco;
Or. en
Amendment 42
Proposal for a directive
Article 19 – paragraph 1 – point e
Text proposed by the Commission
Amendment
(e) waterpipe tobacco;
deleted
Or. en
Amendment 43
Proposal for a directive
Article 20 – paragraph 2 – table
Text proposed by the Commission
(a)
cigars
:
40 % of the retail selling price inclusive of all taxes or the Union rate of EUR 143 per 1000 items or per kilogram , adjusted in accordance with Article 12 ;
(b)
cigarillos
:
40 % of the retail selling price inclusive of all taxes or the Union rate of EUR 143 per 1000 items or per kilogram , adjusted in accordance with Article 12;
(c)
fine-cut tobacco for the rolling of cigarettes
:
62 % of the weighted average retail selling price of fine-cut tobacco for the rolling of cigarettes released for consumption, or the Union rate of EUR 215 per kilogram , adjusted in accordance with Article 12 ;
(d)
other smoking tobacco
:
50 % of the retail selling price inclusive of all taxes, or the Union rate of EUR 143 per kilogram , adjusted in accordance with Article 12 ;
(e)
waterpipe tobacco
:
50 % of the retail selling price inclusive of all taxes, or the Union rate of EUR 107 per kilogram, adjusted in accordance with Article 12;
(f)
heated tobacco
:
55 % of the retail selling price inclusive of all taxes or the Union rate of EUR 108 per 1 000 items adjusted in accordance with Article 12; 55 % of the retail selling price inclusive of all taxes or the Union rate of EUR 155 per kilogram, adjusted in accordance with Article 12;
(g)
other manufactured tobacco
:
50 % of the retail selling price inclusive of all taxes, or the Union rate of EUR 143 per kilogram, adjusted in accordance with Article 12.
Amendment
(a)
cigars and cigarillos
:
15 % of the retail selling price inclusive of all taxes or the Union rate of EUR 54 per 1000 items or per kilogram , adjusted in accordance with Article 12 ;
(d)
smoking tobacco
(i)
fine-cut tobacco for the rolling of cigarettes
:
50 % of the weighted average retail selling price of fine-cut tobacco for the rolling of cigarettes released for consumption, or the Union rate of EUR 180 per kilogram, adjusted in accordance with Article 12;
(ii)
waterpipe tobacco
:
33 % of the retail selling price inclusive of all taxes, or the Union rate of EUR 80 per kilogram, adjusted in accordance with Article 12;
(iii)
other smoking tobacco
:
35 % of the retail selling price inclusive of all taxes, or the Union rate of EUR 110 per kilogram, adjusted in accordance with Article 12;
(f)
heated tobacco
:
40 % of the retail selling price inclusive of all taxes or the Union rate of EUR 80 per 1 000 items adjusted in accordance with Article 12; or 40 % of the retail selling price inclusive of all taxes or the Union rate of EUR 260 per kilogram, adjusted in accordance with Article 12;
(g)
other manufactured tobacco
:
35 % of the retail selling price inclusive of all taxes, or the Union rate of EUR 110 per kilogram, adjusted in accordance with Article 12.
Or. en
Amendment 44
Proposal for a directive
Article 20 – paragraph 4
Text proposed by the Commission
Amendment
4. By way of derogation from paragraph 2, from 1 January 2028 until 31 December 2029 Member States shall ensure that excise duty rates are at least EUR 12 per 1 000 items or per kilogram or 5% of the retail selling price inclusive of all taxes for cigars or cigarillos, at least EUR 22 per kilogram or 20% of the retail selling price inclusive of all taxes for other smoking tobacco and waterpipe tobacco, at least EUR 88 per 1 000 items or EUR 125 per kilogram or 45% of the retail selling price inclusive of all taxes for heated tobacco, and at least EUR 0 per kilogram or 0% of the retail selling price inclusive of all taxes for other manufactured tobacco.
4. By way of derogation from paragraph 2, from 1 January 2028 until 31 December 2030 Member States shall ensure that excise duty rates are at least EUR 12 per 1 000 items or per kilogram or 5% of the retail selling price inclusive of all taxes for cigars and cigarillos, at least EUR 22 per kilogram or 20% of the retail selling price inclusive of all taxes for other smoking tobacco and waterpipe tobacco, at least EUR 58 per 1 000 items or EUR 83 per kilogram or 20 % of the retail selling price inclusive of all taxes for heated tobacco, and at least EUR 0 per kilogram or 0% of the retail selling price inclusive of all taxes for other manufactured tobacco.
Or. en
Justification
The transition period is prolonged by one year. To arrive at the desired final rates for heated tobacco products as laid out in the table in Art. 20 par. 2, the rates applying during the transitional period have been adapted accordingly.
Amendment 45
Proposal for a directive
Article 20 – paragraph 5
Text proposed by the Commission
Amendment
5. By way of derogation from paragraph 2, from 1 January 2030 until 31 December 2031 Member States shall ensure that excise duty rates are at least EUR 71,5 per 1 000 items or per kilogram or 20 % of the retail selling price inclusive of all taxes for cigars or cigarillos, at least EUR 71,5 per kilogram or 25% of the retail selling price inclusive of all taxes for other smoking tobacco, at least EUR 54 per kilogram or 25% of the retail selling price inclusive of all taxes for waterpipe tobacco, at least EUR 98 per 1 000 items or EUR 140 per kilogram or 50% of the retail selling price inclusive of all taxes for heated tobacco, and at least EUR 71,5 per kilogram or 25% of the retail selling price inclusive of all taxes for other manufactured tobacco.
5. By way of derogation from paragraph 2, from 1 January 2031 until 31 December 2032 Member States shall ensure that excise duty rates are at least EUR 24 per 1 000 items or per kilogram or 10 % of the retail selling price inclusive of all taxes for cigars and cigarillos, at least EUR 71,5 per kilogram or 25% of the retail selling price inclusive of all taxes for other smoking tobacco, at least EUR 54 per kilogram or 25% of the retail selling price inclusive of all taxes for waterpipe tobacco, at least EUR 68 per 1 000 items or EUR 97 per kilogram or 30 % of the retail selling price inclusive of all taxes for heated tobacco, and at least EUR 71,5 per kilogram or 25% of the retail selling price inclusive of all taxes for other manufactured tobacco.
Or. en
Justification
The transition period is prolonged by one year. To arrive at the desired final rates for cigars and cigarillos and heated tobacco products as laid out in the table in Art. 20 par. 2, the rates applying during the transitional period have been adapted accordingly.
Amendment 46
Proposal for a directive
Article 22 – paragraph 1 – subparagraph 1 – point a a (new)
Text proposed by the Commission
Amendment
(aa) in the case of liquids for electronic cigarettes a specific duty expressed as an amount per millilitre;
Or. en
Justification
This formulation is more specific and better suited for liquids for electronic cigarettes.
Amendment 47
Proposal for a directive
Article 22 – paragraph 1 – subparagraph 1 – point b
Text proposed by the Commission
Amendment
(b) a specific duty expressed as an amount per kilogram;
(b) in the case of nicotine pouches and other nicotine products a specific duty expressed as an amount per kilogram, or alternatively for a given number of items;
Or. en
Justification
The objective is to introduce an approach tailored for each product category and to be as specific as possible.
Amendment 48
Proposal for a directive
Article 22 – paragraph 1 – subparagraph 1 – point c
Text proposed by the Commission
Amendment
(c) a mixture of both, combining an ad valorem element and a specific element.
(c) a mixture of (a) and (aa), or (a) and (b) accordingly, combining an ad valorem element and a specific element.
Or. en
Justification
The objective is to introduce an approach tailored for each product category and to be as specific as possible.
Amendment 49
Proposal for a directive
Article 22 – paragraph 2 – introductory part
Text proposed by the Commission
Amendment
2. The overall excise duty on liquids for electronic cigarettes, expressed as a percentage or as an amount per millilitre, shall be at least equivalent to the rates or minimum amounts laid down for:
2. The overall excise duty on liquids for electronic cigarettes, whether they contain nicotine or not, expressed as a percentage or as an amount per millilitre, shall be at least 40 % of the retail selling price inclusive of all taxes or the Union rate of EUR 0.36 per millilitre, adjusted in accordance with Article 12.
Or. en
Justification
To make enforcement of the Directive more feasible for national tax authorities, we decided to introduce the same levels of taxation for liquids for electronic cigarettes (vapes) regardless of the nicotine content of the liquid. Tax and customs authorities would not have to examine the nicotine content in order to carry out their obligations.
Amendment 50
Proposal for a directive
Article 22 – paragraph 2 – point a
Text proposed by the Commission
Amendment
(a) liquids containing from 0 mg of nicotine per millilitre to a maximum of 15 mg of nicotine per millilitre: 20 % of the retail selling price inclusive of all taxes or the Union rate of EUR 0,12 per millilitre, adjusted in accordance with Article 12;
deleted
Or. en
Amendment 51
Proposal for a directive
Article 22 – paragraph 2 – point b
Text proposed by the Commission
Amendment
(b) liquids containing more than 15 mg of nicotine per millilitre: 40 % of the retail selling price inclusive of all taxes or the Union rate of EUR 0,36 per millilitre, adjusted in accordance with Article 12.
deleted
Or. en
Amendment 52
Proposal for a directive
Article 22 – paragraph 3 – subparagraph 2 – introductory part
Text proposed by the Commission
Amendment
From 1 January 2030 the overall excise duty, expressed as a percentage or as an amount per kilogram, shall be at least equivalent to the rates or minimum amounts laid down for:
From 1 January 2030 the overall excise duty, expressed as a percentage, as an amount per kilogram or for a given number of items, shall be at least equivalent to the rates or minimum amounts laid down for:
Or. en
Amendment 53
Proposal for a directive
Article 22 – paragraph 3 – subparagraph 2 – point a
Text proposed by the Commission
Amendment
(a) nicotine pouches: 25 % of the retail selling price including all taxes or the Union rate of EUR 71,5 per kilogram;
(a) nicotine pouches: 20 % of the retail selling price including all taxes or the Union rate of EUR 57 per kilogram;
Or. en
Justification
Only some Member States have already introduced an excise duty on nicotine pouches. It is therefore necessary to slightly decrease the speed of taxing them.
Amendment 54
Proposal for a directive
Article 22 – paragraph 3 – subparagraph 2 – point b
Text proposed by the Commission
Amendment
(b) other nicotine products: 25 % of the retail selling price including all taxes.
(b) other nicotine products: 20 % of the retail selling price including all taxes.
Or. en
Amendment 55
Proposal for a directive
Article 22 – paragraph 4 – introductory part
Text proposed by the Commission
Amendment
4. From 1 January 2032 Member States referred to in the first sentence of paragraph 3 of this Article, shall ensure that the overall excise duty, expressed as a percentage or as an amount per kilogram, shall be at least equivalent to the rates or minimum amounts laid down for:
4. From 1 January 2033 Member States referred to in the first sentence of paragraph 3 of this Article, shall ensure that the overall excise duty, expressed as a percentage, as an amount per kilogram or for a given number of items, shall be at least equivalent to the rates or minimum amounts laid down for:
Or. en
Amendment 56
Proposal for a directive
Article 22 – paragraph 4 – point a
Text proposed by the Commission
Amendment
(a) nicotine pouches: 50 % of the retail selling price including all taxes or the Union rate of EUR 143 per kilogram, adjusted in accordance with Article 12;
(a) nicotine pouches: 35 % of the retail selling price including all taxes or the Union rate of EUR 100 per kilogram, adjusted in accordance with Article 12;
Or. en
Justification
Only some Member States have already introduced an excise duty on nicotine pouches. Moreover, the Commission itself states in its impact assessment that the proposed rates for nicotine pouches could trigger a "market collapse" in some Member States (page 103). It is therefore necessary to keep the final minimum rates feasible and more realistic.
Amendment 57
Proposal for a directive
Article 22 – paragraph 4 – point b
Text proposed by the Commission
Amendment
(b) other nicotine products: 50 % of the retail selling price including all taxes.
(b) other nicotine products: 35 % of the retail selling price including all taxes.
Or. en
Amendment 58
Proposal for a directive
Article 26 – paragraph 2 – subparagraph 1 – point a a (new)
Text proposed by the Commission
Amendment
(aa) manufactured tobacco and tobacco related products which are destroyed under administrative supervision;
Or. en
Justification
This is a very technical addition addressing situations when Member States change the excise duties on products with tax stamps (e.g. cigarettes). In such cases, products bearing a tax stamp that reflects the previous (lower) excise duty rate must not remain in circulation once the transitional period has ended. For this reason, authorised warehousekeepers and other relevant economic operators are entitled to a refund of the excise duty already paid, provided that the products are withdrawn from the market and destroyed under the supervision of the competent authorities.
Amendment 59
Proposal for a directive
Article 28 – paragraph 1 – subparagraph 3
Text proposed by the Commission
Amendment
Member States shall, upon request, submit to the Commission available information needed to prepare the report, including the information needed to compare the amount of excise collected and the amount of excise due each year on their territory.
Member States shall, upon request, submit to the Commission available information needed to prepare the report.
Or. en
Justification
We believe the Commission has enough expertise and resources to collect this information by itself. In addition, we do not consider such information to be necessary for the Commission to prepare the relevant report.
Amendment 60
Proposal for a directive
Article 28 – paragraph 4
Text proposed by the Commission
Amendment
4. Minimum levels for new tobacco and nicotine products should be set with the objective of reducing existing tax differentials while taking into account current and future market developments. The Commission shall without undue delay review this directive, taking into account the future revision of Directive 2014/40/EU (Tobacco Products Directive), and consider the possible equalisation of the taxation levels for different product categories, increasing the minimum levels of taxation for heated tobacco and tobacco related products referred to in Articles 20(2)(f) and 22 accordingly.
deleted
Or. en
Justification
In our opinion, it is not sound legal drafting to premise in the current recast what decisions the Commission should take in the future. Moreover, it is unclear why equalisation of the taxation levels for different product categories is needed and desirable in the first place.
Amendment 61
Proposal for a directive
Article 28 a (new)
Text proposed by the Commission
Amendment
Article 28a
By … [two years from the entry into force of this Directive], the Commission shall assess the impact of the new minimum excise duty rates applicable to cigars and cigarillos on SMEs, family-owned manufacturers, regional employment, supply chains, and substitution patterns. Where the assessment shows disproportionate impacts on SMEs, family-owned manufacturers or regional employment, the Commission shall submit a legislative proposal to adjust the applicable minimum rates or the structure of those rates so as to ensure proportionality and to maintain an appropriate differential vis-à-vis cigarettes.
Or. en
EXPLANATORY STATEMENT
The Tobacco Taxation Directive (TTD) recast aims to update the rules on tobacco taxation both in terms of minimum excise duty rates as well as by including novel tobacco related products that have emerged since the last TTD review. Given the dual objective of ensuring both the proper functioning of the internal market and a high level of health protection, it is necessary to find an ambitious but also feasible and realistic equilibrium. The Rapporteur of course understands the need for a review of the tobacco taxation rules in the EU - the minimum rates are becoming outdated due to wage increases and inflation, new products have entered the market and a certain level of harmonization across EU Member States is desirable. Moreover, tobacco taxation can have an impact on public health.
However, it is essential to strike the right balance. Raising the minimum rates of taxation must be done in a careful and thought-out way, taking into account all possible effects on consumers, national tax authorities and the tobacco products market. The effectiveness of excise duties depends not only on the level of minimum rates, but also on the pace, structure and predictability of their implementation. Excessively abrupt or rigid adjustments may distort legal markets and increase incentives for illicit trade, thereby undermining both revenue collection and enforcement objectives. That is why the Rapporteur proposes a more gradual and pragmatic increase of the minimum rates.
A central consideration of the Report is the differentiated treatment of products based on their characteristics, health risks and patterns of use. The Commission proposal recognises the diversity of tobacco and nicotine products and introduces specific tax structures for individual categories. The Rapporteur supports this differentiated approach and considers it essential to always consider the specificities of different tobacco products.
The Report also addresses the balance between public health objectives and fiscal structure. Evidence suggests that some noncombustible products may present lower risks than traditional cigarettes and may contribute to reduced consumption of the most harmful products. The Rapporteur therefore believes that excise duty policy should avoid a one-size-fits-all approach and should reflect relative risk profiles in a proportionate manner.
The Commission introduced two new mechanisms in the TTD - the indexation of minimum rates that takes place every three years and the price level index. The Rapporteur considers both tools to be useful for future-proofing the TTD. The Report adapted the indexation tool by limiting it to core inflation and by introducing a cap of a maximum adjustment by 12 % for better predictability. The price level index ensures a fairer determination of the minimum rates based on how high the general price level is in a given Member State. The Rapporteur agrees with this logic and decided that the price level index’s weight in the calculation of the final minimum rate should be increased from one third to one half.
Finally, the Report highlights the role of transitional periods in facilitating the smooth implementation of the new legal framework. Transitional regimes allow Member States and market participants to adapt progressively to increased minimum rates, thereby reducing the risk of market disruption and higher illicit trade. Therefore, the Rapporteur decided to prolong the transitional period by one year until the end of 2032.
On this basis, the Report proposes targeted adjustments aimed at strengthening the proportionality, coherence and practical effectiveness of the Commission proposal, while fully respecting its core objectives.
ANNEX: DECLARATION OF INPUT
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he included in his report input on matters pertaining to the subject of the file that he received, in the preparation of the draft report, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register
Tobacco Europe AISBL, reg. number: 1496873833-97
European Cigar Manufacturers Association, reg. number: 92802501097-37
European Commission
Smoke Free Partnership, reg. number: 6403725595-50
2. Representatives of public authorities of third countries, including their diplomatic missions and embassies
None
The list above is drawn up under the exclusive responsibility of the rapporteur.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.
ANNEX: LETTER FROM THE COMMITTEE ON LEGAL AFFAIRS
11.12.2025
Encl.: Opinion of the Consultative Working Party
ANNEX: OPINION OF THE CONSULTATIVE WORKING PARTY OF THE LEGAL SERVICES OF THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COMMISSION
Annex
CONSULTATIVE WORKING PARTY
THE COMMISSION
Proposal for a Council directive of the Council on the structure and rates of excise duty applied to tobacco and tobacco related products
COM(2025)0580 of 16.7.2025 – 2025/0580(CNS)