In 2024, with the new Budget Law and the Legislative Decree linked to the tax reform, increases were introduced for excise duties on cigarettes and new penalties for those who do not comply with the regulations. The price of cigarettes has increased by an average of 10 cents per pack, and further changes are expected in
2025.
In this guide, we explain in detail what has changed and what is expected for the future.
Increase in excise duties on cigarettes in 2024
The 2024 Budget Law established that the fixed specific excise duty per unit of product has been increased to 29.30 euros per 1,000 cigarettes, compared to the previous 28.20 euros. This translates into an increase of about 10 cents per package. The same increase concerns shredded tobacco, electronic cigarettes and other smoking products
.
Shredded tobacco also experienced an increase in excise duty, which went from 115 euros to 147.50 euros per kilogram. The excise duty will continue to grow in 2025, when it will reach 148.50
euros per kilogram.
Forecasts for 2025
In 2025, the Budget Law provides for further increases in excise duties on cigarettes. The new value of the fixed excise duty will be 29.50 euros per 1,000 cigarettes, with an impact on prices that could lead to a new increase of about 10 cents per package. In addition, the introduction of a purpose tax on tobacco, proposed by the Italian Association of Medical Oncology (AIOM), is also being discussed, which could increase the price of cigarettes by an additional 5 euros per pack. This increase would serve to finance the healthcare system, generating additional revenues of up to 13.8 billion euros
.
How does the excise on cigarettes work
Excise duties on cigarettes are indirect taxes levied on the manufacture and sale of tobacco products. It is a combination of a fixed component and one proportional to the sales price. In 2024, the proportional part is equal to 49.50% of the retail price, while the fixed component is set at 29.30 euros per 1,000 cigarettes
.
The minimum excise duty for shredded tobacco, as mentioned, is set at 147.50 euros per kilogram. Other tobacco products, such as cigars, cigarettes and smokeless inhaled tobacco, are also subject to
similar increases.
2024 cigarette price list
The new price list for cigarettes came into force on October 1, 2024, with the updating of the costs following the increases in excise duties. The average price of a pack of cigarettes has increased by about 10 cents, with changes also for cigars, shredded tobacco and inhaled
products without combustion.
Updated sanctions for the tobacco trade
Another significant change concerns the sanctioning system. Legislative Decree no. 141 of 26 September 2024 introduced a new system of sanctions for the illegal production, sale and import of tobacco. Penalties can range from imprisonment from 2 to 5 years for those who bring more than 15 kg of tobacco to the market without authorization, to administrative penalties starting at 500 euros for
smaller quantities.
The most serious violations can also result in the confiscation of assets and the closure of the business for retailers that operate illegally.
The increase in excise duties on cigarettes for 2024 has already had a significant impact on the prices of smoking products, and further increases are expected in 2025. The new legislation also provides for a stricter system of sanctions for those who do not respect the rules on the trade and production of tobacco. Stay updated on the news of the Budget Law for 2025 to know all the details on future increases and possible changes to tobacco taxation
.