Sittings · Document

REPORT (COM(2025)0580 – C100207/2025 – 2025/0580(CNS)) 2026-06-08

On the proposal for a Council directive on the structure and rates of excise duty applied to tobacco and tobacco related products (recast)

Committee on Economic and Monetary Affairs · Rapporteur: Tomáš Kubín

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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 (A10-0161/2026),

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

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)

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 OJ C, C/2026/2543, 22.5.2026, ELI: http://data.europa.eu/eli/C/2026/2543/oj.

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 alternatives 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 alternatives, which pose a challenge to the proper functioning of the internal market. In the interest of uniform and fair taxation, those alternatives for manufactured tobacco should be subject to a harmonised excise duty structure and harmonised minimum excise duty rates in the Union. Proper implementation of the ‘less harm, less tax’ principle requires that tax policies reflect the different levels of health risk associated with tobacco and nicotine products, while allowing Member States the necessary flexibility to incorporate that principle into their national taxation frameworks. 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.

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, thereby ensuring that public health considerations are fully integrated into the design and implementation of fiscal measures, 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, taking into account the link between high excise taxes, illicit trade, and related criminal activities, as highlighted in the 2025 EU Serious and Organised Crime Threat Assessment published by EUROPOL, and the broader impact of illicit tobacco trade on internal security and the fight against serious and organised crime and financing of criminal activities in the EU. In that context, particular consideration should be given to Member States facing specific geographic circumstances, which create further incentives for illicit tobacco trade, thereby undermining public revenues and posing additional risks to public health. 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 those traditional cigarettes more smoothly.

__________________

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)

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

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.

Amendment 6

Proposal for a directive

Recital 4

Text proposed by the Commission

Amendment

(4) One of the objectives of the Treaty on European Union is to maintain an economic union, whose characteristics are similar to those of a domestic market, within which there is healthy competition. As regards manufactured tobacco and tobacco related products, the achievement of this aim presupposes that the application in the Member States of taxes affecting the consumption of products in the relevant sector does not distort conditions of competition and does not impede their free movement within the Union.

Amendment 7

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.

Amendment 8

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. The definition of manufactured tobacco and tobacco related products pursuant to this Directive should be aligned with the definitions laid down in other legislative acts of the Union.

Amendment 9

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 and 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 is sold, or intended to be sold, 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.

Amendment 10

Proposal for a directive

Recital 11 a (new)

Text proposed by the Commission

Amendment

(11a) Due consideration should be given to the economic sustainability of agricultural production and of manufacturing and retail sectors linked to tobacco, particularly in regions where such activities represent a significant source of employment, while ensuring consistency with public health objectives.

Amendment 11

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 and proportionate 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. Clearly defined product categories and minimum rates of excise duties would help to reduce consumption and minimise distortion of competition in Member States by ensuring coherent tax treatment of products across the internal market.

Amendment 12

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 and to ensure its effectiveness, the minimum Union rate of excise duty for each product category should be updated every three years exclusively 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 9 % 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.

Amendment 13

Proposal for a directive

Recital 14

Text proposed by the Commission

Amendment

(14) To ensure a balanced distribution of impacts across Member States, the economic situation of Member States needs to be considered by adjusting the minimum Union rates of excise duty by the price levels index of each Member State, as published by Eurostat. Such adjustment should be revised every three years. The price level index adjustment should be applied exclusively within the scope of this Directive and should not be referenced in relation to any future tax directives.

Amendment 14

Proposal for a directive

Recital 14 a (new)

Text proposed by the Commission

Amendment

(14a) The assessment of the redistributive effects of fiscal measures should take into account both their impact on income distribution and their contribution to reducing health risks and long-term public expenditure related to healthcare.

Amendment 15

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. 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 appropriate 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. Significant differences in taxation levels and retail prices between Member States continue to drive cross-border purchasing, parallel trade, and illicit trade in tobacco and nicotine products within the Union’s internal market and from third countries, thereby undermining the proper functioning of the internal market, the effectiveness of excise duty systems, public health objectives and fiscal enforcement. In that context, effective, proportionate and enforceable control measures, namely through strong customs and law enforcement structures in the whole of the supply chain across the Member States, are needed to tackle illicit trade as well as to prevent tax evasion, counterfeiting and smuggling within the Union.

Amendment 16

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 .

Amendment 17

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 disproportionate market disruptions and undue harm to that niche category, minimum excise duties should explicitly reflect those 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.

Amendment 18

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 from the date of 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 a disproportionate impact 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.

Amendment 19

Proposal for a directive

Recital 23 c (new)

Text proposed by the Commission

Amendment

(23c) Given the specific characteristics of the nicotine pouches market, and considering its recent emergence, which is characterised by producers that are SMEs, Member States should provide for a phased implementation of the applicable excise framework, accompanied by appropriate administrative support and guidance for smaller economic operators.

Amendment 20

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.

Amendment 21

Proposal for a directive

Recital 26

Text proposed by the Commission

Amendment

(26) In order to have neutral conditions of competition in the tobacco sector, it is also necessary to set the minimum tax levels for waterpipe tobacco, heated tobacco, other manufactured tobacco and tobacco related products which can be seen as substitutes for tobacco products from a fiscal perspective.

(26) In order to have neutral conditions of competition in the tobacco sector, it is also necessary to set the minimum tax levels in a manner ensuring fair competition between product categories and avoiding distortions affecting legally operating economic actors, for waterpipe tobacco, heated tobacco, other manufactured tobacco and tobacco related products which can be seen as substitutes for tobacco products from a fiscal perspective.

Amendment 22

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. In light of the increased appeal of electronic cigarettes, strong and evidence-based measures should be implemented to address the use of those products, in particular by underage people.

Amendment 23

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 six 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 and ensuring a socially balanced adjustment, while taking into account any potential impact on vulnerable populations.

Amendment 24

Proposal for a directive

Recital 32

Text proposed by the Commission

Amendment

(32) Member States should be allowed to grant exemptions from excise duty or make refunds of excise duty in respect of certain types of manufactured tobacco and tobacco related products depending on the use which is made of them.

(32) Member States should be allowed to grant exemptions from excise duty for approved medical purposes, or make refunds of excise duty in respect of certain types of manufactured tobacco and tobacco related products depending on the use which is made of them.

Amendment 25

Proposal for a directive

Recital 33

Text proposed by the Commission

Amendment

(33) In order to assess the functioning of this Directive, the Commission should submit reports on a regular basis to the European Parliament and Council on the application of this Directive, examining in particular levels of taxation taking into account proper functioning of the internal market, public health, the real value of the rates of excise duty, and the difference between excise revenues due and collected.

(33) In order to assess the functioning of this Directive, the Commission should submit reports on a regular basis to the European Parliament and Council on the application of this Directive, examining in particular levels of taxation taking into account proper functioning of the internal market, public health, the protection of public revenues, the real value of the rates of excise duty, and the difference between excise revenues due and collected.

Amendment 26

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.

deleted

_________________

4 OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj.

Amendment 27

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

Amendment 28

Proposal for a directive

Article 2 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) cigars;

(b) cigars and cigarillos;

Amendment 29

Proposal for a directive

Article 2 – paragraph 1 – point c

Text proposed by the Commission

Amendment

deleted

Amendment 30

Proposal for a directive

Article 2 – paragraph 1 – point d – point i a (new)

Text proposed by the Commission

Amendment

(ia) waterpipe tobacco

Amendment 31

Proposal for a directive

Article 2 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) waterpipe tobacco;

deleted

Amendment 32

Proposal for a directive

Article 2 – paragraph 3

Text proposed by the Commission

Amendment

3. For the purposes of this Directive, ‘raw tobacco’ means any form of harvested tobacco that has been cured or dried and is not manufactured tobacco as defined in Articles 3 to 8

3. For the purposes of this Directive, ‘raw tobacco’ means any form of harvested and dried tobacco that has undergone an initial processing stage.

Amendment 33

Proposal for a directive

Article 2 – paragraph 5

Text proposed by the Commission

Amendment

5. Products containing no tobacco and used exclusively for medical purposes shall not be treated as manufactured tobacco or tobacco related products .

5. Products containing no tobacco and used exclusively for medical purposes and authorised, where required, by a competent Union or national authority, shall not be treated as manufactured tobacco or tobacco related products .

Amendment 34

Proposal for a directive

Article 3 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) rolls of tobacco capable of being smoked as they are and which are not cigars or cigarillos within the meaning of Article 4(1);

(a) rolls of tobacco which are intended to be smoked through a combustion process as they are and which are not cigars or cigarillos within the meaning of Article 4(1);

Amendment 35

Proposal for a directive

Article 3 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) rolls of tobacco which, by simple non-industrial handling, are inserted into cigarette-paper tubes;

(b) rolls of tobacco which are intended to be smoked through a combustion process which, by simple non-industrial handling, are inserted into cigarette-paper tubes, or

Amendment 36

Proposal for a directive

Article 3 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) rolls of tobacco which are intended to be smoked through a combustion process which, by simple non-industrial handling, are wrapped in cigarette paper.

Amendment 37

Proposal for a directive

Article 4 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. For the purposes of this Directive, the following shall be deemed to be cigars or cigarillos if they can be and, given their properties and normal consumer expectations, are exclusively intended to be smoked as they are:

Amendment 38

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

Amendment 39

Proposal for a directive

Article 5 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) tobacco which has been cut or otherwise split, twisted or pressed into blocks and is capable of being smoked without further industrial processing;

(a) tobacco which has been cut or otherwise split, twisted or pressed into blocks and is intended to be smoked through a combustion process without further industrial processing;

Amendment 40

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 Article 3(1), Article 4(1), Article 7(1) and Article 8 and which is intended to be smoked through a combustion process. 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.

Amendment 41

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.

Amendment 42

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.

Amendment 43

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, which are intended for inhalation by users as they are, without combustion, other than via a waterpipe as referred to in Article 6(1).

Amendment 44

Proposal for a directive

Article 7 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1a. Where 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.

Amendment 45

Proposal for a directive

Article 7 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. Products which fall under the definition of heated tobacco laid down in paragraph 1 of this Article and which can also be deemed to be cigarettes as defined in Article 3, or cigars or cigarillos as referred to in Article 4, or smoking tobacco as defined in Article 5, shall be subject in each Member State to whichever excise duty is higher in accordance with the national law of that Member State.

Amendment 46

Proposal for a directive

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3. Products which fall within the definitions set out in both paragraph 1 of this Article and in Article 3 shall be treated as cigarettes.

deleted

Amendment 47

Proposal for a directive

Article 7 – paragraph 4

Text proposed by the Commission

Amendment

4. Products which fall within the definitions set out in both paragraph 1 of this Article and in Article 4 shall be treated as cigars or cigarillos.

deleted

Amendment 48

Proposal for a directive

Article 7 – paragraph 5

Text proposed by the Commission

Amendment

5. Products which fall within the definitions set out in both paragraph 1 of this Article and in Article 5 shall be treated as smoking tobacco.

deleted

Amendment 49

Proposal for a directive

Article 9 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) liquids containing nicotine that can be used in electronic cigarettes or similar vaporising devices or to refill electronic cigarettes;

(a) liquids containing nicotine but not tobacco that can be used in electronic cigarettes or similar vaporising devices or to refill electronic cigarettes or similar vaporising devices;

Amendment 50

Proposal for a directive

Article 9 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) liquids not containing nicotine which are intended to be used in electronic cigarettes or similar vaporising devices or to refill electronic cigarettes.

(b) liquids not containing nicotine or tobacco which are intended to be used in electronic cigarettes or similar vaporising devices or to refill electronic cigarettes or similar vaporising devices.

Amendment 51

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.

Amendment 52

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 but not tobacco intended for oral intake, or plant fibres or equivalent substrate, which are presented in sachet portions or porous sachets or in an equivalent format and which do not contain tobacco.

Amendment 53

Proposal for a directive

Article 10 – paragraph 2

Text proposed by the Commission

Amendment

2. For the purposes of this Directive, ‘other nicotine products’ means products for human consumption containing nicotine and not containing tobacco which can be used for the intake of nicotine in the human body, other than nicotine pouches as defined in paragraph 1 of this Article and liquids for electronic cigarettes as defined in Article 9(1).

2. For the purposes of this Directive, ‘other nicotine products’ means products for human consumption containing nicotine and not containing tobacco which can be used for the intake of nicotine in the human body, other than nicotine pouches as defined in paragraph 1 of this Article and heated tobacco as defined in Article 7(1) and liquids for electronic cigarettes as defined in Article 9(1).

Amendment 54

Proposal for a directive

Article 11 – paragraph 1

Text proposed by the Commission

Amendment

A natural or legal person established in the Union who manufactures a product or has such a product designed or manufactured and markets that product under his name or trademark shall be deemed to be a manufacturer.

A natural or legal person established in the Union who manufactures a tobacco or tobacco related product or has such a product designed or manufactured and markets that product under his name or trademark shall be deemed to be a manufacturer.

Amendment 55

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.

Amendment 56

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 two thirds of the Union rate for the corresponding category multiplied by the price level index divided by one hundred plus one third 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.

Amendment 57

Proposal for a directive

Article 12 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4a. For calculating the adjustment under paragraphs 1, 2 and 4, the following formula shall apply:

where:

y is the first year the adjusted rate shall apply, and

HICP is the harmonised index of consumer prices.

Amendment 58

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.

deleted

Amendment 59

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.

Amendment 60

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 200 per 1000 cigarettes, adjusted in accordance with Article 12, irrespective of the weighted average retail selling price.

Amendment 61

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 250 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.

Amendment 62

Proposal for a directive

Article 19 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) cigars

(a) cigars and cigarillos;

Amendment 63

Proposal for a directive

Article 19 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) cigarillos;

deleted

Amendment 64

Proposal for a directive

Article 19 – paragraph 1 – point c

Text proposed by the Commission

Amendment

deleted

Amendment 65

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;

Amendment 66

Proposal for a directive

Article 19 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) waterpipe tobacco;

deleted

Amendment 67

Proposal for a directive

Article 20 – paragraph 1 – subparagraph 1 – point b

Text proposed by the Commission

Amendment

(b) a specific duty expressed as an amount per kilogram or, in the case of cigars, cigarillos and heated tobacco, alternatively for a given number of items; or

(b) a specific duty expressed as an amount per kilogram or, in the case of cigars and cigarillos, and heated tobacco, alternatively for a given number of items; or

Amendment 68

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

55 % 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 143 per kilogram, adjusted in accordance with Article 12;

(ii)

waterpipe tobacco

40 % 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

35 % 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 35 % of the retail selling price inclusive of all taxes or the Union rate of EUR 200 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.

Amendment 69

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 2031 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.

Amendment 70

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 2032 until 31 December 2033 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.

Amendment 71

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;

Amendment 72

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;

Amendment 73

Proposal for a directive

Article 22 – paragraph 1 – subparagraph 1 – point c

Text proposed by the Commission

Amendment

(c) a mixture of the excise duties under points (a) and (aa), or points (a) and (b), combining an ad valorem element and a specific element.

Amendment 74

Proposal for a directive

Article 22 – paragraph 2

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 30 % of the retail selling price inclusive of all taxes or the Union rate of EUR 0,30 per millilitre, adjusted in accordance with Article 12.

(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;

(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.

Amendment 75

Proposal for a directive

Article 22 – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

Member States shall be allowed a transitional period until 31 December 2031 in order to reach the rates or minimum amounts laid down in paragraph 4 of this Article.

Member States shall be allowed a transitional period until 31 December 2032 in order to reach the rates or minimum amounts laid down in paragraph 4 of this Article.

Amendment 76

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 as an amount for a given number of items, shall be at least equivalent to the rates or minimum amounts laid down for:

Amendment 77

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 30 per kilogram;

Amendment 78

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 the Union rate of EUR 25 per kilogram or EUR 0,25 per millilitre.

Amendment 79

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:

Amendment 80

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: 28 % of the retail selling price including all taxes or the Union rate of EUR 50 per kilogram, adjusted in accordance with Article 12;

Amendment 81

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 the Union rate of EUR 35 per kilogram or EUR 0,25 per millilitre.

Amendment 82

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;

Amendment 83

Proposal for a directive

Article 28 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

The report by the Commission shall examine minimum levels of taxation taking into account the proper functioning of the internal market , public health , the real value of the rates of excise duty, and the wider objectives of the Treaty on the Functioning of the European Union. The report shall assess the application and the impact of the provisions regarding raw tobacco as regards tax evasion and fraud.

The report by the Commission shall examine minimum levels of taxation taking into account the proper functioning of the internal market, public health, the real value of the rates of excise duty taking into account also the purchasing power in individual Member States, and the wider objectives of the Treaty on the Functioning of the European Union. The Commission shall also monitor the impact of revised minimum rates taking into account illicit trade, employment in affected sectors, and regional economic disparities. The report shall assess the application and the impact of the provisions regarding raw tobacco as regards tax evasion and fraud.

Amendment 84

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.

Amendment 85

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

Amendment 86

Proposal for a directive

Article 28 a (new)

Text proposed by the Commission

Amendment

Article 28a

By … [two years from the date of 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 a disproportionate adverse impact 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.

Amendment 87

Proposal for a directive

Article 30

Text proposed by the Commission

Amendment

Article 30

deleted

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt the delegated acts referred to in Article 12(5) shall be conferred on the Commission for an indeterminate period of time.

3. The delegation of power referred to in Article 12(5) may be revoked at any time by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it to the Council.

6. A delegated act adopted pursuant to Article 12(5) shall enter into force only if no objection has been expressed by the Council within a period of 2 months of notification of that act to the Council or if, before the expiry of that period, the Council has informed the Commission that it will not object. That period shall be extended by 2 months at the initiative of the Council.

7. The Commission shall inform the European Parliament of the adoption of delegated acts by the Commission, of any objection formulated to them, or of the revocation of the delegation of powers by the Council.

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 report, prior to the adoption thereof in committee, 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

Ms Aurore Lalucq

Chair

Committee on Economic and Monetary Affairs

BRUSSELS

Subject: Opinion on Proposal for a directive of the Council on the structure and rates of excise duty applied to tobacco and tobacco related products (COM(2025)0580 – C100207/2025 – 2025/0580(CNS))

Dear Madam Chair,

The Committee on Legal Affairs has examined the proposal referred to above pursuant to Rule 113 on recasting of Parliament's Rules of Procedure.

Paragraph 3 of that Rule reads as follows:

“If the committee responsible for legal affairs considers that the proposal does not entail any substantive changes other than those identified as such in the proposal, it shall inform the committee responsible for the subject matter thereof.

In such a case, over and above the conditions laid down in Rules 187 and 188, amendments shall be admissible within the committee responsible for the subject-matter only if they concern those parts of the proposal which contain changes.

However, amendments to parts of the proposal which remain unchanged may, by way of exception and on a case-by-case basis, be accepted by the Chair of the committee responsible for the subject matter if he or she considers that this is necessary for pressing reasons relating to the internal logic of the text or because the amendments are inextricably linked to other admissible amendments. Such reasons must be stated in a written justification to the amendments.”

Following the here attached opinion of the Consultative Working Party of the Legal Services of the Parliament, the Council and the Commission, which has examined the recast proposal, and in keeping with the recommendations of the Rapporteur, the Committee on Legal Affairs considers that the proposal in question does not include any substantive changes other than those identified as such and that, as regards the codification of the unchanged provisions of the earlier act with those substantive amendments, the proposal contains a straightforward codification of the existing text, without any change in its substance.

The Committee on Legal Affairs considered the matter at its meeting of 3 December 2025, and arrived at the above conclusion unanimously.

Yours sincerely,

Ilhan Kyuchyuk

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

CONSULTATIVE WORKING PARTY

OF THE LEGAL SERVICES

Brussels, 6 October 2025

OPINION

FOR THE ATTENTION OF THE EUROPEAN PARLIAMENT

THE COUNCIL

THE COMMISSION

Proposal for a Council directive 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)

Having regard to the Inter-institutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts, and in particular to point 9 thereof, the Consultative Working Party consisting of the respective legal services of the European Parliament, the Council and the Commission met on 24 September 2025 for the purpose of examining the aforementioned proposal submitted by the Commission.

At that meeting, an examination of the proposal for a Council Directive recasting Council Directive 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied to manufactured tobacco resulted in the Consultative Working Party’s concluding, without dissent, that the proposal does not comprise any substantive amendments other than those identified as such. The Working Party also concluded, as regards the codification of the unchanged provisions of the earlier act with those substantive amendments, that the proposal contains a straightforward codification of the existing legal text, without any change in its substance.

F. DREXLER E. FINNEGAN D. CALLEJA CRESPO

Jurisconsult Jurisconsult Director-General

PROCEDURE – COMMITTEE RESPONSIBLE

Title

Structure and rates of excise duty applied to tobacco and tobacco related products (recast)

References

COM(2025)0580 – C10-0207/2025 – 2025/0580(CNS)

Date Parliament was consulted

12.9.2025

Committee(s) responsible

Date announced in plenary

ECON

6.10.2025

Rapporteurs

Date appointed

Tomáš Kubín

11.9.2025

Discussed in committee

19.3.2026

4.5.2026

Date adopted

3.6.2026

Result of final vote

–:

Date tabled

8.6.2026

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

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