Overview

• The plan is part of a broader push to establish new own resources for the 2028–2035 EU budget and reduce reliance on member-state contributions.
• The proposal is set for formal presentation on July 16 and must win unanimous approval from all 27 member states to revise the Tobacco Excise Directive.
• It outlines record excise hikes—139% for cigarettes, 258% for rolling tobacco and 1 090% for cigars— that the Commission estimates would push consumer prices over 20% and add about 0.5 percentage points to inflation.
• Approximately €15 billion in annual tobacco excise revenue would be diverted from national budgets to the EU’s coffers.
• Unanimity is required to enact the changes and Sweden’s finance minister has already deemed the proposal “completely unacceptable.”