The European Parliament has openly challenged the European Commission’s fiscal agenda. In a plenary session on June 17, MEPs not only rejected the executive’s proposal to increase excise duties on tobacco and alternative nicotine products but formally requested that the Commission withdraw the bill entirely.
This rebellion exposes a broad, cross-party opposition to stricter EU-wide nicotine taxation. The Commission’s original proposal sought to establish a minimum tax threshold of 63% on tobacco products. Even though the Parliament’s Economic and Monetary Affairs (ECON) Committee had previously suggested lowering this target to 60%, the broader Parliament chose to disavow that compromise entirely, voting down the entire reform package by 439 votes to 181.
Marco Falcone, the European People’s Party (EPP) rapporteur for the reform, noted that the vote reflected significant fragmentation within political groups. He attributed the division to highly ideological interpretations of tobacco taxation and the powerful influence of national economic interests.
These national divisions are mirrored within the European Council, where member states have been deadlocked for months. Several countries have actively resisted uniform tax hikes to protect their domestic markets and consumers.
| Country / Entity | Tax Stance / Proposal | Primary Motivation |
|---|---|---|
| EU Commission | 63% minimum tax threshold | Standardize and increase tax rates across all member states. |
| France | Low vape tax / High tobacco tax | Protecting alternative product consumers from rising costs. |
| Sweden | Vetoed nicotine pouch tax hikes | Defending the domestic oral nicotine and snus market. |
| Italy | Opposes general tax increases | Preventing economic damage to the domestic tobacco and vape sector. |
The political maneuvering was also evident in a failed alternative proposal by the Patriots for Europe group. The group sought more favorable tax rates for alternative products but fell short by just twelve votes. This failure was partly due to internal divisions; French National Rally deputies voted against it, refusing to support any framework that validated taxation on vaping products.
Because taxation remains a sovereign competence of individual EU member states, the Parliament’s vote is technically non-binding. However, the political message severely weakens the Commission’s leverage as negotiations continue.
Following the failure of the Cypriot presidency to secure the required unanimous agreement among member states, the deadlocked dossier will be handed over to Ireland in July. The incoming Irish presidency must now decide whether to keep the controversial excise duty reform on the active agenda or scrap the current draft and reopen negotiations from scratch.
