Overview

• EU Commission’s proposal calls for significant tobacco tax hikes to curb smoking and reduce health issues.
• The measure would extend taxes beyond traditional cigarettes to include tobacco heating systems and e-cigarettes.
• Fiscal measures follow the EU Parliament’s dismissal of expanded outdoor smoking bans.
• In Germany the proposal could spur a 20% levy increase, pushing a €9 pack to about €10.
• German tobacco lobby warns the move risks destabilizing established tax frameworks and burdening mid-sized businesses.