On 10 June 2026, European Parliament rapporteur Tomáš Kubín tabled 87 amendments to the Commission's proposal for a recast of the directive on the structure and rates of excise duty applied to tobacco and tobacco-related products. The amendments, attributed to a single unidentified political group, seek to moderate the fiscal impact on specific product categories and economic operators while broadening the directive's scope to include raw tobacco.
The amendments represent the first parliamentary input on the file, with no prior coverage of the Commission's original proposal available. The package is set to be debated in the Committee on Economic and Monetary Affairs before a plenary vote.
Scope expansion and definitional changes
Amendments 1 and 10 expand the directive's title and recitals to cover raw tobacco, adding a requirement to consider the economic sustainability of the agricultural, manufacturing, and retail sectors. Amendments 34-36 narrow the definition of cigarettes to rolls of tobacco "which are intended to be smoked through a combustion process," which would likely exclude heated tobacco products from the cigarette category and subject them to a separate, potentially lower tax regime.
Cigars, cigarillos, and nicotine pouches
Amendments 16-18 and 28-29 delete the original text's aim to raise minimum rates for cigars and cigarillos, arguing they are a distinct, marginal market dominated by SMEs. A new recital (23a) and a mandatory Commission impact assessment on SMEs and employment (23b) are proposed, with a provision to adjust rates if disproportionate harm is found. For nicotine pouches, amendments 19 and 23 introduce a phased implementation of the excise framework with administrative support for SMEs, and extend the transitional period from four to six years.
Indexation and taxation adjustments
Amendments 12-13 tie the automatic three-year update of minimum rates exclusively to core inflation (excluding energy and unprocessed food) and apply the price level index adjustment only to the minimum rates, not the overall duty structure. Amendment 22 replaces the proposed higher rate on high-nicotine e-liquids with a single rate for all liquids, regardless of nicotine content, to simplify enforcement.
Delegated acts and review deleted
Amendments 26-27 delete the Commission's power to adopt delegated acts to amend minimum rates and remove the requirement for a review of the directive, reducing the executive's flexibility to adjust the framework without legislative action.
Stakeholder impacts
The amendments would benefit SMEs in the cigar, cigarillo, and nicotine pouch sectors by softening fiscal pressure and providing longer transition periods. Heated tobacco product manufacturers would gain from a separate tax category, potentially lowering their tax burden. EU consumers may face less price increases on these products, but public health advocates could see the changes as weakening the directive's health objectives. National tax authorities would face simplified enforcement for e-liquids but added complexity from new definitions and scope expansion.
Institutional follow-up
The amendments will be considered by the European Parliament's Committee on Economic and Monetary Affairs, which will vote on a consolidated report. The Council will then adopt its position, followed by trilogue negotiations. The Commission's original proposal aimed to update excise rates to reflect inflation and new products, but the amendments signal a parliamentary push for a more industry-sensitive approach.
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