While Slovakia’s finance ministry analyzes how much the new tobacco directive would add to or take from the budget, traders and the WHO are raising warning flags.

From 2028, the minimum excise duty on tobacco products and their alternatives is set to be tens to hundreds of percent higher than what the directive has previously established.

The EU is trying to keep pace with the market and is therefore updating its tobacco laws after years. This could mean a sharp increase in taxes. However, it faces pressure from critics who argue that it will only spur the black market and reduce budget revenues.

While debates are ongoing at the Commission and European Parliament on tightening EU rules regarding the sale and taxation of nicotine products, analysts from INESS and KPMG have published reports indicating that these strategies are actually driving the black market.