Cigarettes are becoming more expensive. Starting January 16, the first price increases set out in the latest economic plan take effect, with further hikes scheduled through 2028. In this initial phase, pack prices will rise by up to €0.30, reaching as much as €6.80 in some cases. Other brands’ prices will be updated in the coming days by the Customs and Monopolies Agency.

Tobacco remains a major source of state revenue, currently generating around €15 billion annually, with an additional €1 billion expected from 2026 onwards. In that year alone, the increased revenue is projected at roughly €900 million. Price hikes will apply to cigarettes, cigars, and loose tobacco, while “heated tobacco” products, such as Terea devices, will remain excluded—a market segment increasingly favored by multinational companies.

The debate over tobacco taxation continues. Oncologists have long advocated for sharper increases - up to €5 per pack - to offset the social and healthcare costs of smoking. Environmental health experts also call for a broader approach to so-called “sin taxes” on harmful products.

According to Assoutenti, the planned excise increases from 2026 to 2028 will raise the minimum tax on cigarettes from €29.50 per 1,000 in 2025 to €38.50 in 2028. Overall, these adjustments are expected to generate an additional €1.47 billion in government revenue over the three-year period.