Initially, the European Commission also proposed increasing excise duties on fuels. However, due to the long-standing lack of unanimity among EU countries to increase these taxes, it was decided to include automotive fuels in the emissions trading system, for which unanimity is not required.
Regarding excise duties on cigarettes, each Member State will be able to set the amount of the tax, provided that it does not fall below a minimum threshold. To prevent excise duties from becoming obsolete over time and to preserve their real value, the European Commission proposes that each country’s minimum excise duty increase every three years, in line with cumulative inflation.
