Enhancing Europe’s Tobacco Tax Directive for a Healthier Future (Policy Brief)

This Policy Brief was written by Universidad Politécnica de Cartagena (UPCT) in Spain. The policy brief discusses opportunities to improve the upcoming revision of the European Union’s (EU) Tobacco Tax Directive (TTD). Specifically, the authors propose updating the minimum nominal tax rates for inflation in response to growing affordability of cigarettes in the region and modifying the structure and increasing the rates of the minimum excise for fine-cut tobacco to reduce the price gap between cigarettes and fine-cut tobacco. The authors also propose strengthening the minimum tax design for heated tobacco products, liquids for electronic cigarettes, and nicotine pouches by removing the relative minimum clause, instead creating a minimum excise floor which exists for cigarettes. These proposals would improve public health in the EU by decreasing smoking prevalence and uptake, while raising additional tax revenues. The policy brief concludes with recommendations for decision makers to seize the opportunity to strengthen tobacco control by resuming the process of drafting and improving the TTD.  

A corresponding Report can be found here.