Workers' safeguard directive proposed by the Commission for mitigating risks from ionizing radiation exposure.
The European Commission's proposal to increase tobacco tax rates across EU countries is set to significantly boost the prices of cigarettes and other tobacco products. The minimum tax on 1,000 cigarettes is expected to rise from €90 to €215, a substantial 139% increase in excise duty.
This move forms part of the Commission's strategy to align with public health goals, such as Europe's Beating Cancer Plan, and extends taxes to new tobacco-related products like e-cigarettes, heated tobacco, and nicotine pouches.
However, the Commission's own impact assessment cautions of potential unintended consequences. The steep tax hikes could drive some smokers towards cheaper, illicit tobacco markets, potentially fueling a rise in black market sales. The risk of increased smuggling and illegal trade arises due to excessively high taxes, which might create strong incentives for consumers and suppliers to circumvent legal channels.
To combat this, the proposal includes measures to enhance monitoring and control of tobacco product movement within the EU, such as extending the existing electronic system (EMCS) to raw tobacco. These efforts aim to better detect and combat illicit trade but may not entirely offset the pressures caused by higher prices.
The predicted price increase has raised concerns among experts, with branded cigarettes expected to cost over €10. This could primarily affect low-income individuals, a group already disproportionately affected by tobacco-related diseases.
It's important to note that this price increase is a result of a planned change affecting EU countries. Currently, the price of branded cigarettes is around €8.50, but at supermarkets like Lidl or Kaufland, they are expected to exceed €10 post-increase. Untaxed cigarettes, which are often cheaper for smokers, could potentially disadvantage legal businesses.
The further development of the tobacco tax increase remains uncertain, as the Commission's proposal has not yet been decided. This is a common issue for other European countries as well, with numerous illnesses such as chronic bronchitis, heart and circulatory problems, and lung cancer linked to smoking.
As the EU grapples with this proposed tax increase, the focus remains on finding a balance between reducing smoking rates and minimising the potential negative impacts on public health and the economy.
The European Commission's proposed tax increase on tobacco products might drive some consumers towards cheaper alternatives, such as illicit tobacco markets, due to the high costs. In the realm of health-and-wellness, this could potentially exacerbate existing health disparities among low-income individuals who are disproportionately affected by tobacco-related diseases, while in the financial sector, the rise in smuggling and illegal trade could adversely impact legitimate businesses.
