Overview

• An internal draft would lift minimum levies on cigarettes by 139%, cut tobacco by 258% and cigars by 1,090%, adding about €1 per pack in Italy
• The proposal extends steep excise increases to heated tobacco, e-cigarettes and nicotine pouches under a unified framework
• Italy’s Economy Minister Giancarlo Giorgetti warns the measure could jeopardize the country’s €2 billion heated tobacco exports and domestic jobs
• Rome highlights its record low cigarette smuggling rate of 1.8% versus a 10% EU average, cautioning that heavier taxes elsewhere may boost illicit trade
• Any change to the EU tobacco excise directive requires unanimous backing from all 27 member states and is eyed for inclusion in the Commission’s mid-July budget blueprint