Italy Implements New Tobacco Tax Increases Amid Public Health Campaigns

On Friday, June 5, 2026, Italy introduced new tobacco tax increases, marking the latest step in a multi-year plan to curb smoking rates and promote public health. The changes, outlined in the 2026 Budget Law (Law No. 206/202), affect a range of tobacco products, including traditional cigarettes, cigars, and heated tobacco products. The measures reflect broader efforts to align with global public health strategies aimed at reducing tobacco-related harm.

Key Changes in Tobacco Taxes

The tax adjustments, announced by the Italian Customs and Monopoly Agency (Agenzia delle Dogane e dei Monopoli), include:

• Traditional Cigarettes: Brands such as Elixyr and Che face an increase of 10–20 cents per pack. Specific brands like Elixyr Red, Elixyr Blue, and Che Original Blue are among those impacted.
• Heated Tobacco Products: Certain brands, including Virto sticks, saw a reduction of approximately 50 cents per pack due to lower excise duties. This marks the first time since January 2026 that some tobacco products have seen price decreases.

The tax adjustments are part of a three-year plan to gradually raise excise duties on tobacco products. By 2028, the excise tax on cigarettes is projected to reach 38.50 euros per 1,000 units, translating to an estimated 40-cent increase per pack. Similar hikes are expected for cigars and cut tobacco, with rates rising from 148.50 euros to 169.50 euros per kilogram by 2028.

Background and Public Health Context

The tax increases align with global public health recommendations, which emphasize that higher prices are one of the most effective ways to reduce tobacco consumption. A 2024 study published by the Centre for Economic Policy Research (CEPR) highlighted that price elasticity measures show significant reductions in smoking rates when taxes rise, particularly among younger demographics and low-income groups.

Italy’s approach mirrors similar policies in other European countries, where tobacco taxation has been a cornerstone of anti-smoking campaigns. The 2026 Budget Law also includes provisions for expanding access to smoking cessation programs and increasing public awareness of the health risks associated with tobacco use.

Public Petition and Legislative Developments

In January 2026, a coalition of medical and health organizations, including the Italian Association of Medical Oncology (AIOM), the AIRC Foundation, and the Umberto Veronesi Foundation, launched a petition calling for a fixed 5-euro excise tax on all tobacco and nicotine products. The initiative, which gathered over 51,960 signatures—surpassing the constitutional threshold for a popular legislative proposal—has compelled the Italian Parliament to consider the measure.

If approved, the proposed tax would take effect on January 1, 2027, adding 5 euros to the cost of a standard cigarette pack and similar increments for other products. Exemptions would apply to nicotine replacement therapies, such as patches and gum, used for smoking cessation.

Impact on Consumers and the Market

The tax increases have already led to the removal of several tobacco products from the market, as manufacturers adjust to the new regulatory landscape. The Agenzia delle Dogane e dei Monopoli has documented over 387 brand-specific price adjustments since January 2026, affecting major international and local brands alike.

Consumers have expressed mixed reactions, with some criticizing the financial burden while others acknowledge the public health benefits. Advocacy groups argue that the measures are necessary to address the long-term health and economic costs of smoking, which the Italian government estimates cost the healthcare system billions annually.

Looking Ahead

The 2026 tax changes represent a significant milestone in Italy’s tobacco control efforts. As the country moves forward with its phased approach, the focus will remain on balancing public health goals with the economic realities faced by smokers and retailers. The upcoming parliamentary review of the 5-euro excise tax proposal will be a critical test of the government’s commitment to reducing tobacco use.

Key Takeaways

• Italy’s 2026 Budget Law introduces gradual tax increases on tobacco products, with rates expected to rise by 40 cents per pack by 2028.
• Heated tobacco products face reduced excise duties, marking a rare price decrease for some brands in 2026.
• A public petition advocating for a 5-euro fixed tax on all tobacco products has gained momentum, with the potential to reshape future regulations.
• Global research underscores the effectiveness of price hikes in reducing smoking rates, particularly among vulnerable