Dutch Health Agency: Cross-Border Tobacco Undermines Tax Strategy

The Dutch Public Health Agency called for new policy measures to curb the growing trend of cross-border tobacco shopping, which it says is undermining the effectiveness of the Netherlands’ high tobacco taxes. The Netherlands currently has the second-highest cigarette tax in the EU (€7.66 per pack) behind Ireland (€9.92), but inconsistent tax policies across borders continue to challenge its effectiveness.

Following significant tax hikes in 2024—24% on cigarettes and 45% on rolling tobacco—about 7% of Dutch smokers quit, while 22% cut down, and 14% switched to cheaper brands, according to the agency’s research. However, the number of smokers buying tobacco abroad surged to 60%, up from 40% in 2023 and double 2020. With neighboring countries offering cheaper options, smokers are evading domestic taxes, weakening the public health impact.

“Policy must focus on reducing purchases of tobacco products made abroad,” the agency stated, urging limits on how much tobacco can be imported for personal use and recommending excise taxes on e-cigarettes to deter youth addiction.

While the World Health Organization touts tax hikes as one of the most effective anti-smoking tools, their impact appears stronger in low-income countries. In wealthier nations like the Netherlands, the ease of border shopping reduces their effectiveness, the agency said.