Commissioner Wopke Hoekstra has defended the planned revision of the Tobacco Taxation Directive against charges that it infringes Member States' tax sovereignty, arguing that cross-border issues justify EU-level action. In a written answer on 9 July 2026 to a question from Siegbert Frank Droese (ESN), Hoekstra stressed that the proposal focuses only on areas where national measures alone are insufficient, and that Member States remain free to set rates above EU minima. He also rejected concerns about regressive price hikes for low-income households, noting that the proposal partially bases minimum rates on purchasing power parities to cushion the impact on lower-tax Member States.
whether the high degree of alignment violates subsidiarity and Article 5(3) of the Treaty on European Union, and whether significant price increases would disproportionately hurt low-income households. Hoekstra cited the Council conclusions of June 2020, which called for minimum rates that secure revenues, protect public health, and account for Member States' economic conditions. He added that the proposal follows Better Regulation principles, with comprehensive impact assessments and stakeholder consultations.
Hoekstra's answer contains no new numerical targets or deadlines, instead reiterating the existing proposal's rationale. The revision of the Tobacco Taxation Directive, first proposed by the Commission, remains under negotiation in the Council and European Parliament. The Commissioner's defence signals that the Commission sees the current text as a balanced compromise between public health goals and national fiscal autonomy, but the lack of concrete concessions may fuel further debate among Member States concerned about tax sovereignty and social equity.