Under the new plan:

• Cigarettes: Tax increases by VND 2,000 ($0.08) per pack annually, reaching VND 10,000 ($0.40) per pack by 2031.
• Cigars: Starting at VND 20,000 ($0.80) per cigar in 2027, rising to VND 100,000 ($4) per cigar in 2031.
• Other tobacco forms (e.g., pipe or shredded tobacco): Set at VND 20,000/100g or 100ml in 2027, increasing to VND 100,000 by 2031.

This is the first time Vietnam will implement a structured absolute tobacco tax, following the lead of other countries around the globe. Prior to this, only ad valorem taxes applied.

The post Vietnam to Hike Tobacco Taxes Under New Law first appeared on Tobacco Reporter.

The revised directive proposes higher minimum excise taxes and expands the scope to include e-cigarette liquids, nicotine pouches, and raw tobacco. Meanwhile, TEDOR would apply a uniform 15% levy on tobacco products released for consumption, expected to generate €11.2 billion annually.

“While the proposal is meant to tackle the developments and emergence of new products (e-cigarettes, heated tobacco products, and new products containing nicotine), the European Commission also decided to revise the EU minimum rates applicable to traditional tobacco products,” the European Cigar Manufacturers Association (ECMA) said in a press release. “It disregards the different tax-bearing capacity of niche products from mass-produced tobacco and nicotine products, demonstrating a misunderstanding of the market.”

“Increasing the EU minimum rate by 1,100% for niche products which are already the least affordable on the tobacco and nicotine market, is out of touch and completely irresponsible,” Paul Varakas, ECMA director general, said. “This proposal is very worrying. It goes against every commitment the EU Executive has made recently regarding reducing the regulatory burdens for SMEs and midcaps, companies that are largely dominating the cigar/cigarillo segment, as opposed to other products manufactured by Big Tobacco.” 

While both measures aim to reduce tobacco use, particularly among youth, the TEDOR proposal is also part of the EU’s broader €2 trillion budget strategy.

“[Commission President] Ursula von der Leyen and [European Commissioner for Budget] Piotr Serafin were both vocal about the need to increase Europe’s competitiveness by decreasing EU regulatory burdens,” said Adam Bartha, director of the European Policy Information Center. “The Tobacco Excise Duty Own Resource and the revision of the Tobacco Excise Directive goes against their own stated goals and increases the tax and regulatory burdens on Europeans without reducing smoking rates.”

The Commission insists the reforms are vital to combat smoking and close loopholes fueling illicit trade, though opposition from countries like Italy and Greece could stall progress. However, both proposals face political hurdles, requiring unanimous approval from all member states.

The post EU Unveils Dual Tobacco Tax Proposals first appeared on Tobacco Reporter.

The proposal, referenced in a document from Germany’s International Affairs Liaison Office in Brussels and submitted to the German parliament, suggests new EU revenue sources for the 2028–2034 budget could include levies on electronic waste and tobacco. Though not yet officially confirmed by the European Commission, the idea adds to growing pressure from at least 15 EU member states to raise excise duties on tobacco products.

Euractiv reported the European Commission is considering a 139% tax hike on cigarettes, along with steeper levies on alternative products such as e-cigarettes, nicotine pouches, and heated tobacco. Sweden now joins Italy, Greece, Romania, and Bulgaria in opposing the move, primarily to defend nicotine pouches.

In a post on X, Svantesson said the proposal would result in “a very significant tax increase on white snus,” and that the Commission wants the tax revenue “to go to the EU and not to Sweden.” 

The post Sweden Rejects EU Plan to Fund Budget with Tobacco Tax first appeared on Tobacco Reporter.

The new tax laws cap the lowest-tier cigarettes at EGP 48 ($0.96) and the mid-tier at EGP 69 ($1.38). Previously, the lowest tier retailed for EGP 38 ($0.76) per pack, with 60-65% of the price collected being tax. This past weekend, the government amended the Value Added Tax (VAT) on cigarettes, which will increase the minimum and maximum retail prices by 12% annually for three years starting in November.

Sales were paused on Sunday and Monday to adjust pricing, with the new rates taking effect on Tuesday. Aman said the company is still assessing the full impact of the updated tax regulations and may provide further updates soon.

The post Eastern Company Caps Cig Prices After Egypt Ups Taxes first appeared on Tobacco Reporter.

If passed in Parliament, the tax hike would drive up the average price of a 20-pack of cigarettes from NZ$26.88 ($16.40) to NZ$35.54 ($21.68) by July 2027.

According to the 2022 STEPS health survey, 35.5% of Cook Islands adults aged 25–64 smoke, including 44% of men between the ages of 18 and 44.

The post Cook Islands Looking to Raise Tobacco Taxes 30% first appeared on Tobacco Reporter.

The tax on tobacco and nicotine products other than cigarettes, including vapes, pouches, and cigars, will increase to 45% across the board, regardless of the previous tax rate. Tobacco retailers will also see their annual license fee double, going from $75 to $150 per year.

The post Illinois Raises Taxes on All Tobacco and Nicotine Products first appeared on Tobacco Reporter.

Under the updated rules, the specific excise duty on cigarettes will rise from €53.10 to €56.10 per 1,000 cigarettes, while the minimum excise duty will increase to €124.20. Fine-cut and other smoking tobacco will increase from €114.15 to €120.50/kg, heated tobacco will increase from €185.82 to €198.50/kg, cigars and cigarillos will be taxed at €120.50 per 1,000 pieces, e-liquids will be taxed at €0.20 per milliliter, and new tobacco products will be taxed at €120.50/kg.

The post Croatia Raises Taxes on Tobacco Products first appeared on Tobacco Reporter.

While MIPs serve as a price floor to protect tobacco farmers—particularly when supply exceeds demand—they are not support prices and do not involve government subsidies.

The ECC noted that shifting to market-driven pricing aligns with the broader government policy of phasing out price controls in favor of demand-and-supply dynamics. However, concerns were raised that cess (a local tax on tobacco), calculated as a percentage of MIPs, could be reduced if open market prices rise above government-set minimums.

Despite approving revised MIPs for various tobacco types for the 2025–26 fiscal year, the ECC emphasized the need for further deliberation before dismantling the current system. The Ministry was instructed to develop a comprehensive transition plan and present it to the ECC in due course.

The post Pakistan Shifting Toward Open Market Tobacco Pricing first appeared on Tobacco Reporter.

The provision for withholding tax rates under Section 153 of the Income Tax Ordinance will be changed to charge the new tax on the gross amount of payment received by distributors when they hand over cigarette sticks to retailers.

It was previously reported that Pakistan’s government was facing pressure from the World Health Organization to increase its FED further.

The post Pakistan Increases Tobacco Tax 240% first appeared on Tobacco Reporter.

Federal excise taxes are A$1.40 (91 cents) per cigarette, driving the average cost of a pack of 20 to A$40 ($26). In the last six years, the excise taxes increased from A$16 to A$28 ($10.40 to $18.20) per pack, but the revenue collected by the government has still gone down as smokers turn to a flourishing black market, according to Minns. Tobacco tax revenue peaked at A$16.3 billion ($10.1 billion) in 2020 but has dipped to a projected A$7.4 billion ($4.8 billion) this year.

Minns said police have better things to do than tobacco enforcement, and the “commonsense option” would be for the federal government to acknowledge the excise was not working. NSW Treasurer Daniel Mookhey insisted he would raise the issue with his federal counterpart despite the flat rejection.

“We can’t ignore the fact there’s an interaction between the federal exercise and the emergence of illegal tobacco,” Mookhey said.

The post Australia Stands with Highest Tobacco Taxes Despite Black Market Concerns  first appeared on Tobacco Reporter.