Tobacco lobbying complicates EU tax reform and 2040 health target

Industry expands its access in Brussels

Lobbying by major tobacco companies is playing a growing role in EU policymaking as legislators debate taxes and rules covering cigarettes, e-cigarettes, heated tobacco and nicotine pouches. VnEconomy reported that Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Brands, alongside trade associations and advocacy groups, are seeking to influence measures that could directly affect their business models.

Integrity Watch data from Transparency International show that meetings between tobacco industry representatives and members of the European Parliament increased by 57%, from an average of 14.7 per month to 23 per month by June 2026. Industry businesses are estimated to spend €8 million to €10 million annually on direct lobbying of EU institutions, with more than 100 registered lobbyists working to influence policy. The actual footprint may be larger because those figures exclude public-relations firms, law firms, consultancies and industry-backed policy organizations.

Tax proposal stalls in Parliament

The access gap has raised concerns among public-health organizations. During a key legislative period, health NGOs held only 12 meetings with influential members of Parliament, while Philip Morris International alone held 121. Raphaël Kergueno, senior policy officer at Transparency International EU, said NGOs were almost absent from the 20 entities most heavily targeted by tobacco lobbying, highlighting the imbalance in access to policymakers.

The principal dispute concerns the Tobacco Taxation Directive. The European Commission proposed raising the minimum excise duty on cigarettes by 139% and introducing EU-wide minimum taxes on e-cigarettes, heated tobacco and nicotine pouches for the first time. Tobacco companies argue that steep increases could encourage smuggling and counterfeiting while reducing tax revenue. Public-health groups counter that substantially lower rates for newer products could create a policy loophole and make them more attractive, particularly to young consumers.

New nicotine products test the 2040 target

The debate intensified after a report by lawmaker Thomas Kubin entered the directive’s review process. Public-health organizations characterized its approach as “less harm, less tax.” Following months of negotiations, the original draft was amended to phase in tax increases, particularly for e-cigarettes, heated tobacco and nicotine pouches. On 17 June, Parliament rejected the directive by 439 votes to 181. The Commission must now either prepare a new legislative proposal or wait for the Council of the EU to attempt to restart negotiations under a future EU presidency.

The impasse affects the EU’s ambition to create a tobacco-free generation by 2040 under Europe’s Beating Cancer Plan. Around 24% of Europeans still smoke, and approximately 300 billion cigarettes are sold in the EU each year. Tobacco-related diseases are estimated to cause about 700,000 deaths annually and impose roughly €25 billion in healthcare costs. The challenge now extends beyond cigarettes: according to the World Health Organization, about 11.6% of adolescents aged 13 to 15 in the European region use products such as e-cigarettes, heated tobacco or nicotine pouches. Any renewed tax proposal will therefore have to address consumption, youth access and the illegal market while determining whether different nicotine products should face different tax and regulatory treatment.