Excise Duties on Tobacco

The Directive on excise duties for manufactured tobacco requires EU countries to levy a minimum rate of excise duties on cigarettes. EU countries are free to apply excise duty rates above this minimum, according to their own national needs. 

The minimum rate must consist of: 

• a specific component of between 7.5% and 76.5% of the total tax burden (TTB) - expressed as a fixed amount per 1000 cigarettes 
• an ad valorem component - expressed as a percentage of the maximum retail selling price 

In addition, the overall excise rate must be: 

• at least EUR 90 per 1000 cigarettes 
• at least 60% of the weighted average retail selling price 

Note: EU countries that apply an excise duty of EUR 115 or more do not need to comply with the 60% criterion above. 

Specific provisions exist to allow Portugal to apply a reduced rate up to 50% less than the required overall minimum excise duty on cigarettes consumed in the most remote regions of the Azores and Madeira.

The Directive also sets down minimum excise duty rates for manufactured tobacco other than cigarettes. The structure for taxing ‘other tobacco products’ is slightly different than for cigarettes. 

Member States can choose to apply a specific component or an ad valorem component, or a mixture of the two. Minimum rates are set out for three distinct categories: 

• fine-cut smoking tobacco 
• cigars and cigarillos 
• other smoking tobaccos 

The Directive is currently under review. This review is part of Europe’s Beating Cancer Plan, as taxation plays a pivotal role in reducing tobacco consumption - particularly in deterring youth. 

More about the review of The Directive 

• Council Directive 2011/64/EU on the structure and rates of excise duty applied to manufactured tobacco 

• Full list of excise duty receipts of Member States (November 2023) 
• Releases for consumption of cigarettes and fine cut tobacco (2002-2022) 
• Archived excise duty tables