Cigarette prices could rise dramatically in Hungary

By: Trademagazin Date: 2025. 06. 24. 11:23

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The European Commission’s tobacco industry reform, which envisages a drastic increase in excise duties, has been leaked, and would affect alternative tobacco products just as much as traditional cigarettes. EU countries are visibly divided on the issue: France and the Netherlands, which are already past the intervention, are pushing for uniformly increasing taxes. However, several experts argue that the proposal under preparation ignores the economic and social characteristics of the member states. In addition, the significant price increase will definitely favor the rise of the black market, which is also dangerous because tobacco products from illegal, i.e. uncontrolled sources, may contain substances that are particularly harmful to health.

The idea that the EU would reduce the consumption of tobacco products by introducing a new tax system intervention by unifying the EU market could trigger heated political debates and economic distortions, reported Euractiv, which specializes in EU affairs.

Critics of the seemingly one-sided proposal say the European Commission would ignore local specificities and social consequences in member states. According to Clearing the Air, the proposal came after a group of EU member states wrote to Ursula von der Leyen, the president of the European Commission, demanding new measures. Fred Roeder, executive director of the Consumer Choice Center, said Europe believes that punishing smokers who try to quit is a good way to strengthen public finances, but the new taxes would hit small tobacco shops, cross-border shoppers and Europe’s poorest smokers.

Michael Landl, director of the World Vapers’ Alliance, took an even more extreme view than Fred Roeder, saying that smoking rates are highest among low-income Europeans, who are least able to afford the higher prices. In fact, in his statement, he went so far as to say that this is not just bad policy, it is a public health disaster that paves the way for social injustice. The leader added that the commission ignores science when it comes to new types of products, punishes the poor and gives anti-EU voices exactly what they want: proof that Brussels is out of touch with people and therefore does not care about them.

Michael von Foerster, the executive director of the German Tobacco Industry Association, also spoke out against the EU proposal, Bild reported. According to the expert, it is also necessary to consider that the tax increase could destroy existing and reliable tax models as well as small and medium-sized enterprises. By comparison, the industry provides 2.1 million direct and indirect jobs in Europe, which is equivalent to the entire population of Vienna.