Portugal latest to reject EU tobacco tax hike proposal

Lisbon: This weekend, Portugal formally announced its opposition to the European Union’s tobacco tax proposals, warning the changes could cost the country up to €1.5 billion in lost revenue. The objection targets both the Tobacco Excise Duty Own Resource (TEDOR)—a proposed 15% EU tax to help fund the €2 trillion 2028–2034 EU budget—and the plan to hike cigarette taxes across the bloc. In Portugal, the price of a pack of cigarettes would rise by €1.22 under the proposal.

Portugal is also challenging the EU’s plan to tax alternative nicotine products, like e-cigarettes and heated tobacco, the same as traditional cigarettes, arguing this contradicts public health goals.

“Less harmful products should face lower taxes to encourage switching,” the government stated, warning that equal taxation could deter smokers from moving to reduced-risk alternatives and boost black market activity.

The European Commission proposed a 139% increase in excise duties, from €90 to €215 per 1,000 cigarettes. While 15 countries, including France, Ireland, and the Netherlands, already back the plan, others, particularly Bulgaria, Greece, and Italy, have been vocal in opposing the hikes, warning of growing black markets and financial strain on consumers.

The EU, aligning with WHO guidance, maintains that all tobacco and nicotine products carry health risks and should be taxed uniformly to discourage use and prevent cross-border trade distortions.

The proposed revision to the Tobacco Excise Duty Directive must receive unanimous approval from all 27 EU member states to move forward.