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The EU is considering its biggest overhaul of tobacco taxes in over a decade through a revised Tobacco Taxation Directive (TTD). The proposal would increase minimum excise duties on cigarettes by 139 percent and introduce EU-wide minimum taxes on vapes, heated tobacco products, and nicotine pouches. According to the European Commission, existing tobacco rules have helped reduce cigarette smoking but failed to keep pace with the fast growth of newer nicotine products and online marketing. Although the European Parliament did not adopt a formal opinion on the proposal in June 2026, the legislation remains under negotiation in the Council of the European Union, where all 27 member states must agree unanimously before it can become law. Around 24 percent of Europeans still smoke, with about 300 billion cigarettes sold each year across the bloc. Tobacco-related illnesses contribute to around 700,000 deaths annually and cost an estimated €25 billion each year in healthcare spending. A big part of the issue is related to younger smokers, who are turning to alternative nicotine products such as vapes, heated tobacco devices, and nicotine pouches. The World Health Organization estimates that 11.6 percent of teenagers aged 13 to 15 in the European region use these products. While generally considered less harmful than cigarettes, health experts say they still carry risks because they contain addictive nicotine and other harmful substances. The proposed directive would apply minimum excise taxes to newer nicotine products and expand the EU's tobacco tracking system to include raw tobacco. The Commission says the measures would reduce tax gaps between products, make nicotine products more expensive, and help tackle illegal trade as part of its goal of creating a "Tobacco-Free Generation" by 2040. If approved, the directive would raise prices for cigarettes and many alternative nicotine products while increasing costs for tobacco companies.