Excise on Tobacco products: impact on the internal market of the minimum rates of excise duty and the wide availability of alternative tobacco products

Client/Funding Institution

European Parliament

Abstract

This project primarily assesses the fiscal and health implications of the proposed revision of the EU Tobacco Taxation Directive (TTD), focusing on its impact across nine Member States: Bulgaria, Czechia, France, Italy, Poland, Portugal, Romania, Slovakia and Spain. The analysis is based on TETSiM, a simulation model that links tax changes to retail prices, consumption responses (via price and income elasticities), excise revenues and long-term health outcomes. The model covers four major product categories: cigarettes, RYO tobacco, HTPs and e-cigarettes. The preliminary findings support the economic and public health rationale for adopting the revised TTD. Harmonised upward adjustments would reduce disparities across Member States, limit market distortions and strengthen the EU’s tobacco control framework.

Duration

October 2025 - April 2026

wiiw team Leader

Kristijan Fidanovski

wiiw Staff

Corinna Covi, Kristijan Fidanovski, Biljana Jovanovikj, Nóra Kungl

Project Partners

Wirschaftsuniversität Wien (WU), Hana Ross

Research Areas: Other

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