MEP Tomáš Kubín (PfE, Czech) has proposed “a more gradual and pragmatic increase of the minimum rates” in his draft report on revising the Tobacco Taxation Directive, published on Thursday 5 March. He wishes to adapt the indexation tool by limiting it to core inflation and introducing a maximum adjustment ceiling of 12%.
“Excessively abrupt or rigid adjustments may distort legal markets and increase incentives for illicit trade, thereby undermining both revenue collection and enforcement objectives”, he justified in the explanatory memorandum. He felt that the maximum adjustment ceiling would provide greater predictability. The price level index ensures a fairer determination of minimum rates based on the general price level in a given Member State. The rapporteur has decided that the weight of the price level index in calculating the final minimum rate should be increased from one third to one half.
He supported extending the scope to include new tobacco-related products that have appeared since the directive was last reviewed. This would involve adding: manufactured tobacco; heated tobacco; liquid for electronic cigarettes; and nicotine pouches.
Finally, the rapporteur stresses the importance of transitional periods for the smooth implementation of the new legal framework. “Transitional regimes allow Member States and market participants to adapt progressively to increased minimum rates, thereby reducing the risk of market disruption and higher illicit trade”, he argued.
Consequently, he proposed extending the transitional period by one year compared to the European Commission’s proposal, until the end of 2032. He accompanied this proposal with targeted adjustments “aimed at strengthening the proportionality, coherence and practical effectiveness of the Commission proposal, while fully respecting its core objectives”.
MEPs have until Monday 13 April to table their amendments to the draft report. Presented in July 2025 by the Commission (see EUROPE 13683/15), the directive’s review has already been the subject of several compromise proposals in the EU Council (see EUROPE 13791/18).
Read the draft report: https://aeur.eu/f/l3a (Original version in French by Anne Damiani)