The European Parliament's Socialists and Democrats (S&D) group has tabled an amendment to the Council directive revising excise duty arrangements for tobacco, proposing to slash duty-free allowances for heated tobacco sticks and other smoking tobacco. The amendment, published on 10 June 2026 as part of the Parliament's report on the file, would cap heated tobacco sticks at 40 per person and halve the allowance for waterpipe and other smoking tobacco to 0.5 kg, while leaving cigarette and cigar limits unchanged.
The single amendment (Amendment 4) targets Article 32(3)(a) of Directive (EU) 2020/262, which sets quantitative limits for duty-free movement of tobacco products by private individuals within the EU. The S&D proposal introduces a specific limit of 40 sticks for heated tobacco products (HTPs), a category currently not explicitly capped in the legislation, and reduces the allowance for waterpipe tobacco and other smoking tobacco from 1.0 kg to 0.5 kg. Cigarettes (400 items), cigarillos (200 items), and cigars (200 items) remain at existing levels.
Policy orientations and trade-offs The amendment reflects a precautionary, public-health-driven approach, aiming to close a regulatory loophole for novel tobacco products and reduce incentives for cross-border shopping. The S&D group argues that existing rules are outdated and facilitate tax avoidance and health risks. However, the absence of amendments from other political groups (EPP, Renew, Greens/EFA, ECR, ID, The Left) suggests either broad acceptance of the Commission's original proposal—which did not include these specific limits—or a decision not to contest this issue at this stage. The main political cleavage is between the S&D's push for tighter controls and the implicit status quo preferred by other groups.
Impact on stakeholders - EU consumers: The cap on heated tobacco sticks (40 sticks, roughly two packs) and halved allowance for loose tobacco would reduce the quantity of tobacco products that can be brought across borders duty-free, potentially increasing costs for frequent cross-border shoppers and users of novel tobacco products. - Tobacco industry: Manufacturers of heated tobacco products face reduced demand from duty-free channels, while traditional cigarette and cigar producers see no change. The explicit cap on HTPs could shift consumption patterns or push users toward regulated domestic markets. - EU member states: National customs and tax authorities benefit from clearer rules and reduced tax avoidance, but may face enforcement challenges for the new HTP limit. Countries with high tobacco taxes (e.g., Nordic states) may see reduced cross-border shopping. - Public health advocates: The tighter limits align with goals to reduce tobacco consumption and close loopholes for novel products, potentially lowering overall tobacco use.
Expected institutional follow-up The amendment will be considered by the European Parliament's plenary as part of the report on the directive. The Council must then adopt its position, followed by trilogue negotiations. The Commission's original proposal did not include these specific limits, so the S&D amendment represents a significant departure that may face resistance from member states and other political groups. The next procedural step is the plenary vote, expected in the coming months. No prior coverage of this file exists in recent records.
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