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Vaping Taxes Stall as Parliament Rejects the Commission’s Plan

Strasbourg: The European Parliament has handed the Commission a bruising rebuke over how the bloc taxes tobacco. Lawmakers voted to reject the proposed overhaul of the tobacco tax directive, sending Brussels back to redraw a plan it had billed as a pillar of its cancer-prevention agenda.

The margin left little doubt. Members rejected the package by 439 votes to 181, a lopsided verdict that cut across the usual party lines. The Commission had tabled the revision in July 2025, aiming to lift minimum excise rates and, for the first time, pull e-cigarettes, heated tobacco and nicotine pouches into the tax net.

Supporters framed higher duties as basic public-health arithmetic. Raise the price, cut consumption, save lives, and narrow the wide gap between the cheapest and priciest cigarette markets in the Union. The plan also promised fresh revenue for national budgets that lean on tobacco receipts.

Opponents countered that the numbers cut the other way. They warned that steep, sudden increases would push smokers toward the black market, hollow out legitimate tax takings and hit lower-income consumers hardest. An EU advisory body had already cautioned against overreach, urging reform that stays proportionate and predictable.

The vaping question sat at the centre of the fight. Public-health campaigners argue that taxing e-liquids discourages young people from starting; the industry and some members counter that heavy taxes on lower-risk products could nudge users back toward combustible cigarettes. Parliament chose to reopen rather than settle that debate.

The rejection does not kill the file, but it forces a rewrite and a delay. The Commission must now weigh whether to soften the rate increases, phase them in more slowly or carve out new products, knowing that the revised text was not due to take effect until 2028 in any case. The legislative history sits on the Parliament’s tracking service.

Illicit trade looms over the whole argument. Every rise in duty widens the incentive to smuggle, and enforcement agencies have spent the year dismantling cigarette networks that already thrive on price gaps between member states. A tax reform that ignores that reality risks funding criminals rather than health systems. Officials know that smuggled cartons already move freely across the bloc’s internal borders, and a wider price gap would only sharpen the incentive to divert them.

For now the status quo holds. Smokers face today’s patchwork of rates, vapers stay largely untaxed at the EU level, and finance ministers wait to see what a chastened Commission brings back. The one certainty is that the fight over how Europe prices its most-taxed vice is far from over.