The Italian government has introduced the first wave of scheduled tobacco price hikes under its latest budget framework, adding up to 30 cents to the price of a pack. This measure marks the start of a multi-year tax escalation running through 2028 that will raise approximately €900 million in additional state revenue in 2026 alone.
Following updates by the Italian Monopolies, popular brands like Marlboro will now cost €6.80 per pack. While traditional cigarettes, cigars, and rolling tobacco face higher costs, heated tobacco products like Terea remain unaffected by this round of increases as tobacco companies continue shifting resources toward reduced-risk categories.
Excise Tax Escalation Through 2028
According to calculations by consumer rights group Assoutenti, the budget measure establishes a fixed minimum excise schedule across several tobacco categories to secure fiscal targets.
| Year | Cigarette Minimum Excise (per 1,000 units) | Cigarillo Minimum Excise (per kg) |
|---|---|---|
| 2025 | €29.50 | €37.00 |
| 2026 | €32.00 | €47.00 |
| 2027 | €35.50 | €49.00 |
| 2028 | €38.50 | €51.00 |
Assoutenti President Gabriele Melluso noted that the retail price adjustments “will guarantee an increase in revenue of €1.47 billion over the three-year period” for the state budget.
Health Advocates Demand Stronger Sin Taxes
Despite the projected revenue growth, health organizations argue the 30-cent hike falls short of addressing smoking-related medical costs. Italy’s oncologists’ association has repeatedly called for a €5-per-pack increase to directly fund public healthcare services.
Environmental and medical groups at SIMA advocate for a broader fiscal approach. SIMA President Alessandro Miani stated: “In many other countries, the idea of a ‘sin tax’ has been successfully applied to various products, from spirits to sugary drinks. This has not only helped reduce consumption of these products, but has also led to an increase in public revenues, intended to cover the associated healthcare costs.”
The European Union continues to evaluate directives that could mandate higher tobacco tax floors across all member states in upcoming legislative sessions.
