PRESS RELEASE
Niche traditional products and EU SMEs hit the most by new EU Commission’s proposal
On 16 July 2025, the European Commission unveiled a proposal to revise the Tobacco Excise Directive. 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. It disregards the different tax-bearing capacity of niche products from mass-produced tobacco and nicotine products demonstrating a misunderstanding of the market.
| Current EU minimum | 2025 proposed rates | Increase | |
| Cigarettes | 90e / 1000 units | 215e / 1000 units | 139 % |
| Roll-your-own tobacco | 60e / kg | 215e / kg | 258 % |
| Cigars/cigarillos | 12e / 1000 units or kg | 143e / 1000 units or kg | 1092 % |
| OR | OR | ||
| 5% ad valorem | 40% ad valorem | 700 % | |
| Other smoking tobacco | 22e / kg | 143e / kg | 550 % |
| Waterpipe tobacco | 22e / kg | 107e / kg | 386 % |
| Nicotine pouches | N/A | 143e / kg | – |
| Heated tobacco | N/A | 108 e / 1000 units OR155e / kg | – |
| E-liquids with more than 15mg of nicotine / ml | N/A | 0.36e / ml of liquid | – |
| E-liquids with up to 15mg of nicotine / ml | N/A | 0.12e / ml of liquid | – |
Paul Varakas, Director General of the European Cigar Manufacturers Association:
“Increasing the EU minimum rate by 1100% for niche products which are already the least affordable on the tobacco and nicotine market, is out of touch and completely irresponsible.
Cigars/cigarillos have always benefited from a differentiated tax rate due to their substantial manufacturing costs and differences. The emergence of new products on the market should not change this fact. Cigars/cigarillos should not be lumped in with new nicotine products. They have different consumption patterns and different groups of consumers.
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.
We urge Member States to reconsider some of the proposed measures so as to not severely hit EU SME and midcaps competitiveness and sustainability.”.
The Association is composed of the following companies: Arnold André, Burger Söhne, Canariense de Tabacos, Casa 1910, Continental Tobacco Corporation, Corita Cigars, Dannemann, De Olifant, Empresa Madeirense de Tabacos, Fabrica de Tabaco Micaelense, Gesinta, Joh. Wilh. Von Eicken GmbH, Kaliman Caribe, Oettinger Davidoff, Maya Selva, Manifatture Sigaro Toscano, Meerapfel companies, Moderno Opificio del Sigaro Italiano, My&Mi, Ritmeester Cigars, Scandinavian Tobacco Group, Tabacalera S.L.U., TOR – The New World Cigars Distributor, Vandermarliere Cigar Family, Villiger Söhne and Wörmann & Scholle.
Contact: Paul Varakas, paul.varakas@ecma.eu, www.ecma.eu
