Cigarette Taxes in Europe, 2019
3 min readBy:King James I, King of England and Ireland, imposed the first levy on tobacco in 1604, an import taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. of 6 shillings 10 pence to the pound. Today, Ireland and the United Kingdom levy the highest excise duties on cigarettes in the European Union (EU), at €7.57 (US $8.93) and €6.57 ($7.75) per 20-cigarette pack, respectively. This compares to an EU average of €3.09 ($3.64). In contrast, Bulgaria (€1.76 or $2.07) and Hungary (€1.96 or $2.31) levy the lowest excise duties.
Stay informed on the tax policies impacting you.
Subscribe to get insights from our trusted experts delivered straight to your inbox.
SubscribeTo ensure the functioning of its internal market, the EU sets a minimum excise duty on cigarettes. It consists of a specific component and an ad valorem component, resulting in a minimum overall excise duty of €1.80 ($2.12) per 20-cigarette pack and 60 percent of an EU country’s weighted average retail selling price (certain exceptions apply). On top of excise duties, all EU countries levy a value-added tax (VAT) on cigarettes.
Taking into account both excise duties and VAT, the average share of taxes paid on a 20-pack of cigarettes ranges from 91.6 percent in the United Kingdom to 69.3 percent in Luxembourg (as a percent of the weighted average retail sales price).
|
Notes: The excise duties were converted into USD using the average 2018 USD-EUR exchange rate (0.848); see IRS, “Yearly Average Currency Exchange Rates,” https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates. Source: European Commission, “Excise Duty Tables: Part III – Manufactured Tobacco,” https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/taxation/excise_duties/tobacco_products/rates/excise_duties-part_iii_tobacco_en.pdf. |
|||||||
|
Excise Duty |
Total Tax (Excise Duty and VAT) |
Weighted Average Retail Sale Price (Including Excise Duty and VAT) |
Tax as a Share of the Weighted Average Retail Sales Price | ||||
|---|---|---|---|---|---|---|---|
| EUR | USD | EUR | USD | EUR | USD | ||
| Austria (AT) | €2.95 | $3.47 | €3.74 | $4.41 | €4.76 | $5.62 | 78.5% |
| Belgium (BE) | €3.77 | $4.45 | €4.83 | $5.70 | €6.10 | $7.19 | 79.2% |
| Bulgaria (BG) | €1.76 | $2.07 | €2.18 | $2.58 | €2.57 | $3.03 | 85.1% |
| Croatia (HR) | €2.04 | $2.41 | €2.71 | $3.19 | €3.35 | $3.95 | 80.9% |
| Cyprus (CY) | €2.57 | $3.03 | €3.26 | $3.85 | €4.33 | $5.11 | 75.4% |
| Czech Republic (CZ) | €2.07 | $2.45 | €2.68 | $3.16 | €3.48 | $4.11 | 76.9% |
| Denmark (DK) | €3.23 | $3.80 | €4.30 | $5.07 | €5.39 | $6.35 | 79.9% |
| Estonia (EE) | €2.62 | $3.08 | €3.21 | $3.78 | €3.55 | $4.19 | 90.3% |
| Finland (FI) | €4.73 | $5.58 | €6.02 | $7.10 | €6.70 | $7.90 | 89.9% |
| France (FR) | €5.24 | $6.18 | €6.54 | $7.71 | €7.78 | $9.17 | 84.1% |
| Germany (DE) | €3.19 | $3.76 | €4.09 | $4.82 | €5.64 | $6.65 | 72.5% |
| Greece (GR) | €2.74 | $3.23 | €3.55 | $4.18 | €4.18 | $4.93 | 84.8% |
| Hungary (HU) | €1.96 | $2.31 | €2.69 | $3.18 | €3.46 | $4.08 | 77.8% |
| Ireland (IE) | €7.57 | $8.93 | €9.70 | $11.43 | €11.37 | $13.41 | 85.3% |
| Italy (IT) | €2.92 | $3.44 | €3.80 | $4.48 | €4.90 | $5.78 | 77.5% |
| Latvia (LV) | €2.13 | $2.51 | €2.69 | $3.17 | €3.20 | $3.77 | 84.0% |
| Lithuania (LT) | €1.98 | $2.33 | €2.53 | $2.98 | €3.18 | $3.75 | 79.5% |
| Luxembourg (LU) | €2.54 | $3.00 | €3.22 | $3.79 | €4.64 | $5.47 | 69.3% |
| Malta (MT) | €3.37 | $3.97 | €4.17 | $4.92 | €5.25 | $6.19 | 79.4% |
| Netherlands (NL) | €3.81 | $4.50 | €4.89 | $5.76 | €6.19 | $7.30 | 79.0% |
| Poland (PL) | €1.99 | $2.35 | €2.60 | $3.06 | €3.26 | $3.84 | 79.8% |
| Portugal (PT) | €2.60 | $3.06 | €3.44 | $4.05 | €4.49 | $5.30 | 76.5% |
| Romania (RO) | €2.08 | $2.45 | €2.62 | $3.09 | €3.40 | $4.01 | 77.0% |
| Slovakia (SK) | €1.98 | $2.33 | €2.52 | $2.97 | €3.23 | $3.81 | 77.9% |
| Slovenia (SI) | €2.22 | $2.62 | €2.85 | $3.36 | €3.51 | $4.14 | 81.3% |
| Spain (ES) | €2.80 | $3.30 | €3.58 | $4.23 | €4.52 | $5.33 | 79.3% |
| Sweden (SE) | €3.12 | $3.67 | €4.24 | $5.00 | €5.61 | $6.61 | 75.5% |
| United Kingdom (GB) | €6.57 | $7.75 | €8.03 | $9.47 | €8.77 | $10.34 | 91.6% |
| Average | €3.09 | $3.64 | €3.95 | $4.66 | €4.89 | $5.76 | 80.3% |
Note: This is part of a map series in which we examine excise taxes in Europe.
Stay informed on the tax policies impacting you.
Subscribe to get insights from our trusted experts delivered straight to your inbox.
Subscribe