PM · 10-Q · 2026Q3 · Full report

EU Tobacco Excise Directive

Philip Morris International Inc. · 2026-10-23 · Importance 34 · Surprise 42

In July 2025, the European Commission proposed revising the EU Tobacco Excise Directive, addressing minimum rates for combustible tobacco and extending the directive to heated tobacco, e-cigarettes and nicotine pouches with differentiated tax treatment. Adoption requires unanimous approval by EU Member States, followed by transposition into national legislation across the EU27. The proposal contemplates implementation on January 1, 2028, with an additional four-year transition for several categories, including heated tobacco and nicotine pouches.

Key facts

• The EU Commission's July 2025 proposed revision of the Tobacco Excise Directive includes differentiated tax treatment for heated tobacco, e-cigarettes and nicotine pouches; the proposal contemplates implementation on January 1, 2028, with an additional four-year transition for several categories including heated tobacco and nicotine pouches. source
• PMI expects the EU Tobacco Excise Directive proposal to require unanimous approval by EU Member States and subsequent transposition into national law across the EU 27 Member States. source