The European Union is preparing to impose the sharpest tax increases ever on cigarettes and tobacco products, with the excise duty expected to rise by 139%, from €90 to €215 per 1,000 cigarettes.
Under the new rates, the price of a standard pack of 20 cigarettes — currently about €4.60 in Greece, of which €3.74 (81.3%) is tax — could climb to or even surpass €7, unless manufacturers absorb part of the increase.
According to the European Commission’s proposal, tobacco use remains one of the leading preventable causes of death worldwide, claiming about 8 million lives each year.
Finance Minister Kyriakos Pierrakakis said, “Public health remains a priority, but the tax hike will inevitably lead to a rise in smuggling.”
Finance Minister Kyriakos Pierrakakis said that “public health is a priority, but the higher tax will also drive up smuggling.”
France provides the most striking example: despite maintaining some of the highest tobacco taxes in the EU, illicit cigarette trade in 2024 reached 37.6% of total consumption, according to a KPMG report published in 2025.
The Center for Planning and Economic Research (KEPE) warns that Greece — due to its strategic location, extensive land and sea borders, and high tax burden on tobacco — is among the most vulnerable EU countries to illegal trade.
