The ECOFIN Council was placed by the Minister of National Economy Kyriakos Pierrakakis For the new Council’s Directive proposal on Special Tax (APO) to smoke and tobacco -related products.
Kyriakos Pierrakakis addressed warning to Member States seeking exorbitant increases in tobacco taxation. The debate focused on the new proposal for the EFK on tobacco, with Athens recommending a long adjustment.
As Mr Pierrakakis pointed out, excessive increases not only reduce public revenue through smuggling, but also affect the competitiveness of the European economy, especially at a time that is burdened by Trump duties.
The issue was raised on the Ecofin Council’s agenda where ministers exchanged views on changes to special tax and related products.
Placement at the Ecofin meeting on the new proposal of the Council’s Directive on Special Tax on Tobacco and to Smokes Products. pic.twitter.com/y773NgE3ZN
– Kyriakos pierrakakis (@pierrakakis) October 11, 2025
The speech of Kyriakos Pierrakakis:
“I think this is a very timely and if I am allowed, a particularly intense discussion. End me to start by declaring it obvious, in my opinion, we support the main goals of the proposal. Public health is fundamental – existential – priority. Before expressing the spectrum of concerns we would, I would like to emphasize my appreciation to the Commissioner – Vope and his team – because he has managed, with a clear north in his compass, to navigate the concerns that have been raised during this debate. And I believe that since many of us have some reservations, we have to find a “convergence zone” – and this zone can be found.
Now in terms of our individual unexplains, it is firstly positive that innovative products are included in the Directive. And it’s time, after so many years, to have a revision of this directive. However, while we are teaching the school financially that so -called Pigou taxes are something good – and indeed it is: we tax what is causing damage, which is generally positive – we believe that in this case the minimum levels of taxation are quite high.
And I say this because according to our experience in Greece, and taking into account our geographical location, we have observed in the past that when we increase these tax rates, an increase in smuggling was recorded – Bulgaria said this, it was our experience. Now, of course, we need to enhance our administrative capacity to deal with this phenomenon. And this was, I would say, one of the key priorities and successes of the Greek government: the battle against tax evasion and fighting it in recent years.
Therefore, this is an issue that really concerns us. At the same time, if prices – both in traditional and innovative products – increase sharply and more than the market can, there is an equation of competitiveness. An equation that touches investment and exports.
So we have to take all this. Perhaps we could consider broader transitional periods in the implementation of measures. We could also take into account the optimal practices already implemented by Member States. This is a technical issue, but, for example in innovative products, the Commission promotes taxation per unit, while most member states, as evidenced by our own experience, are implementing weight taxation. In our opinion, this should be examined. However, overall as a final message, I think we need more technical discussions, but at the same time we have to come up with a convergence zone, because it is a high priority issue. Thank you.”