The EU is preparing to raise minimum cigarette prices: a pack could cost up to €7

The European Commission is preparing a major reform of excise duties on tobacco products. The initiative aims to reduce price differences between EU countries while simultaneously lowering smoking rates among the population. According to preliminary proposals, the minimum cost of a pack of cigarettes in Europe could rise to €7 or more.

The Commission proposes to increase the minimum tobacco excise from the current €90 to €215 per 1,000 cigarettes, which would effectively result in a retail price increase of approximately 139%. Thus, a standard pack, which currently costs around €4–5, could rise to €7–8, depending on the tax policy of each country.

The draft was presented on July 16, 2025, and is currently under discussion in the Council of EU Finance Ministers (Ecofin). The reform concerns not only traditional cigarettes but also alternative products—electronic tobacco heating devices and vapes—for which a unified tax framework is planned.

However, not all countries support the initiative. Representatives from Greece and several Eastern European states have warned that a sharp tax increase could lead to increased tobacco smuggling and undermine the legal market. In their view, the reform should be implemented gradually to avoid triggering a surge in illegal trade.

The European Commission argues that the price increase is justified from a public health perspective: higher taxes, based on previous experience, lead to reduced smoking rates among teenagers and young adults.

If the proposals are approved by all EU countries, the new rules could come into effect within the next two years. For residents of countries where tobacco is currently cheaper than the EU average—including Cyprus, Bulgaria, and Romania—the price increase will be especially noticeable.