Italy’s Cigarette Prices Rise Again in 2026

Italian smokers are facing another increase in cigarette prices, marking the third hike in just a few months. Effective March 13, 2026, the price adjustments affect a wide range of tobacco products, from traditional cigarettes to heated tobacco and liquids for electronic devices. The Customs and Monopolies Agency implemented the changes as part of a broader fiscal adjustment outlined in the latest budget law.

Why are Cigarette Prices Increasing?

The price increases are driven by a decision from the Customs and Monopolies Agency to raise excise duties on tobacco products. These increases are planned to continue until 2028, ultimately reaching 40 cents. The government aims to discourage tobacco consumption and improve public health, although also securing tax revenues.

How Much Will Prices Increase?

The price increase averages between 10 to 15 cents per pack, though some formats have already exceeded the 6 euro price point. Earlier increases took effect on January 16th and January 30th, 2026, with some brands seeing increases of up to 30 cents per pack.

Impact on Consumers and Retailers

Retailers are responsible for updating their price lists, while consumers will need to adjust to the higher costs. The government estimates that the price increases will generate approximately 900 million euros in revenue in 2026 alone, with a projected 1.47 billion euros over the three-year period from 2026 to 2028.

Role of the Customs and Monopolies Agency

The Customs and Monopolies Agency sets the retail price of manufactured tobacco and publishes break-down tables of public sale prices by product type. The agency is responsible for implementing the excise duty adjustments mandated by the budget law.

Future Price Increases

These price hikes are not isolated incidents. Further increases are already scheduled for 2027 and 2028, with adjustments estimated between 10 and 14 cents per package each year.