Ireland has launched a push to secure an EU-wide agreement on updated tobacco excise rules during an Economic and Financial Affairs Council meeting in Brussels. Holding the EU Council Presidency, Irish officials are attempting to advance a European Commission tax package that establishes baseline duties across all member states for cigarettes, vapes, and alternative nicotine products.
Speaking upon arrival in Brussels, Tánaiste Simon Harris acknowledged the challenge of achieving total consensus across the bloc.
“We’ve made really significant progress…The overwhelming majority of countries are now in favour of moving forward. There are some with concerns,” Harris said. He added that “the jury is still out” on whether member states will finalize an agreement during the session.
Member State Resistance to the July 2025 Tax Package
First published in July 2025, the Commission’s plan sharply raises minimum excise duties on cigarettes and rolling tobacco while bringing smoke-free alternatives under an EU-wide tax structure. However, tax measures in the EU require unanimous approval from all 27 member states, creating a difficult path to ratification.
Sweden remains opposed to mandatory EU taxes on nicotine pouches, while Italy and Hungary have voiced reservations regarding the scale of the increases. Earlier compromise efforts drafted under the Cypriot presidency were withdrawn in June after failing to gain traction, and the European Parliament previously voted against the draft in a non-binding resolution.
Tracking Raw Leaf and Slashing Personal Import Limits
The directive sets minimum tax floors rather than fixed retail prices, allowing individual countries like Ireland to maintain higher domestic excise rates. To counter the threat of black-market expansion, the proposal introduces structural enforcement tools:
- Raw Tobacco Surveillance: Authorities plan to extend the EU’s Excise Movement and Control System (EMCS) to monitor raw tobacco shipments across borders, closing loopholes that feed illegal manufacturing. Small-scale growers who do not process cured leaf will receive exemptions.
- Reduced Cross-Border Allowances: Ireland’s compromise proposal reduces the personal import guideline from 800 cigarettes (four cartons) to 200 cigarettes (one carton), while permitting countries to set fixed national thresholds no lower than 300 cigarettes.
