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The Future of EU Tobacco Taxation: Insights from Member States and Best Practices for the Next Tobacco Excise Tax Directive

  • Update to Tobacco Excise Tax Directive (TED): The EU is set to update the Tobacco Excise Tax Directive to embrace harm reduction principles, which could save lives, generate revenue for public health, and encourage smokers to switch to less harmful alternative tobacco products (ATPs).
  • Sweden as a Model: Sweden’s successful integration of ATPs, leading to the lowest smoking rate in the EU, serves as a valuable example for other Member States to adopt harm reduction strategies and effectively reduce smoking prevalence.
  • Global Impact of EU Policies: The EU’s approach to tobacco taxation and regulation could influence global health trends, underscoring the importance of harmonizing tax policies that prioritize public health over revenue generation and combatting illicit tobacco markets.

Source Tax Foundation

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