From January 1, 2026, smokers and consumers of other tobacco-related products in Italy are facing a series of scheduled price increases that will affect not only traditional cigarettes but also rolling tobacco, cigars, “small cigars”, and electronic cigarette products. These changes are the result of provisions in the 2026 Budget Law that raise excise duties on tobacco products to generate revenue and discourage consumption.
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How Many Increases and When They Happen
The increases are structured over three annual tranches — 2026, 2027 and 2028 — with excise duty rates rising progressively each year. This gradual approach gives both producers and retailers time to adapt while ensuring a steady increase in prices for consumers over the three-year period.
According to official data and analyses of the Budget Law:
- For cigarettes, the excise duty per 1,000 sticks will rise from 29.50 euro in 2025 to 32 euro in 2026.
- Rolling tobacco (trinciato) will see its excise duty increase from 148.50 euro per kilogram in 2025 to 161.50 euro in 2026.
- Other tobacco products (such as “sigaretti”/small cigars, cigars and pipe tobacco) also face increases under similar annual tranches.
This tranche system means that three distinct price increases are scheduled and implemented each year — one for 2026, another for 2027, and the final one in 2028.
Which Products Are Affected
The price increases impact a wide range of products beyond just traditional cigarettes:
- Traditional cigarettes: all major brands sold in Italy are affected by the new excise levels.
- Rolling tobacco (trinciato): often preferred by smokers who roll their own cigarettes, this product category will see significant price rises that may erode its cost advantage over factory-made cigarettes.
- E-cigarettes and vaping liquids: the taxation system for e-cig products, both with and without nicotine, will be adjusted. For 2026, the excise coefficient on liquids containing nicotine will be 18%, rising to 20% in 2027 and 22% in 2028; liquids without nicotine will also become more expensive with rates going from 13% in 2026 to 17% by 2028.
- Products heated (tobacco heating devices) and other tobacco alternatives will also see price increases over these years.
Taken together, these changes mean almost all tobacco-related products sold in Italy will become more expensive over the next few years as excise duties rise.
How Much Prices Are Expected to Increase at Retail Level
Analysts estimate that the excise changes will translate into the following approximate retail price increases:
- For a typical packet of cigarettes now costing between 5.30 euro and 5.50 euro, prices may increase to around 5.45–5.65 euro in 2026.
- Rolling tobacco products could see increases of roughly 0.50 euro per pack in 2026.
- Electronic and heat-not-burn products are expected to become more expensive by around 0.08–0.10 euro in 2026.
These numbers represent typical trends, and actual price changes at the point of sale may differ slightly depending on brand strategies and how much of the excise increase producers choose to pass on to consumers.
Why the Government Is Increasing Prices
The tax hikes on tobacco products serve two principal purposes:
- Generate additional state revenue: The new regime is expected to yield an additional 1.47 euro billion in excise revenue across 2026-2028, supplementing the roughly 15 euro billion collected annually from tobacco taxation.
- Discourage tobacco consumption: Higher prices are a common public health tool aimed at reducing smoking rates, particularly among young people and long-term smokers. Public health advocates and some medical associations argue that even larger increases would be needed to address healthcare costs linked to smoking-related diseases.
The debate around tobacco taxation remains active, with experts on both sides questioning the balance between health impact, consumer behaviour and illicit trade incentives.
What This Means for Smokers and Retailers
Smokers should expect steady price increases over the next few years for all tobacco products, not just cigarettes. Retailers, including tobacconists and other points of sale, will need to update pricing and tax accounting practices to reflect the new duty levels.
Some manufacturers may choose to absorb part of the excise duty increases to remain competitive, which could blunt the impact on retail prices. However, the overarching trend is clear: the cost of smoking in Italy is set to rise significantly between 2026 and 2028.
Popular Initiative Proposes Much Steeper Price Increase
Alongside the excise duty increases already approved by the government, Italy is also witnessing a growing public debate around a popular initiative bill that proposes a far more substantial rise in tobacco prices. In late January 2026, a coalition of major health and scientific organisations launched a nationwide signature campaign aimed at increasing the retail price of cigarettes and other nicotine products by 5 euro per pack.
The initiative is promoted by groups such as Fondazione Umberto Veronesi, AIRC and the Italian Association of Medical Oncology (AIOM), which argue that incremental tax increases are not sufficient to significantly reduce smoking rates. According to the promoters, a sharp and immediate price hike would be one of the most effective tools to discourage consumption, particularly among young people, while also generating additional resources to be earmarked for prevention, healthcare and cancer treatment.
To be formally submitted to Parliament, the proposal must collect at least 50,000 certified signatures. While the initiative does not automatically become law, its progress has already reignited political and social discussions on the balance between public health goals, fiscal policy and consumer freedom. If debated by Parliament, it would represent a decisive shift compared to the gradual, multi-year excise increases currently in force.
