Cigarette prices in Cyprus could rise to €6, €6.50 or €7 a packet as the European Union moves towards higher excise duties on tobacco products.
George Constantinou, spokesperson for the Customs Department, said increases were expected but stressed that prices in Cyprus would remain below the levels seen in several northern European countries.
Speaking about the proposed changes, Constantinou explained that discussions on adjusting tobacco excise duty rates had been under way at EU level for several years. The last adjustment took place in 2011.
“Regarding the increases, there will be increases. We cannot prevent that,” he said, noting that the EU had been discussing the issue for years.
Why the EU wants higher tobacco taxes
Constantinou identified three main reasons behind the proposed changes.
The first is pressure from the World Health Organisation (WHO) on the European Commission to use taxation as a means of reducing tobacco consumption and, consequently, the number of cancer cases and deaths linked to smoking.
The second is the EU’s aim to bring taxation policies across its 27 member states closer together.
He pointed to significant differences in cigarette prices across Europe. In northern European countries, as well as Belgium, France, Italy and the Netherlands, a packet can cost €13, €15 or even €17.
By contrast, prices in southern and eastern European countries, including Cyprus, are generally between €3 and €5 a packet, reflecting lower tax rates.
The Customs Department spokesperson said these differences also create opportunities for tobacco smuggling. Criminal networks can make substantial profits by moving large quantities of cigarettes from countries with lower taxes to markets where prices are much higher.
He referred to cases involving suitcases and luggage filled with cigarettes, adding that price differences were even greater when the United Kingdom was still an EU member, as a packet of standard cigarettes there could cost €20 or €21.
The third reason concerns newer tobacco and nicotine products, which are also expected to be brought under the excise duty system.
These include nicotine pouches, heated tobacco products and liquids used in vaping devices. Constantinou noted that Cyprus had already made several seizures involving nicotine pouches.
Cyprus secured a 10-year transition period
Constantinou also highlighted the role of Cyprus during its Presidency of the Council of the EU in the first half of 2026.
He said the country had helped secure two important provisions aimed at limiting the impact of the proposed increases on member states.
The first is a transition period of approximately 10 years, meaning that the full increases will not be introduced immediately but will be phased in gradually.
He said this arrangement helped secure the agreement of all member states after discussions had initially included proposals for much higher tax increases.
The second achievement, according to Constantinou, was persuading the European Commission and all 27 member states to adopt the lowest possible proposed rates for the increases.
He said the initial proposals had included considerably higher tax burdens.
The final rates are expected to be approved at EU level by December, according to his remarks.
Cigarette prices could rise from €4.50 to €7
Addressing concerns about reports suggesting that cigarette prices could reach €12 or €13, Constantinou stressed that these figures mainly concerned other European markets.
In Cyprus, where a packet currently costs around €4.50 to €5, he said prices could eventually reach €6, €6.50 or €7.
“Prices in Cyprus will not reach the levels mentioned earlier, of €12–€13, so people should not be worried,” he said.
He stressed that these figures were estimates rather than a final decision on the scale of the increase in Cyprus, as the EU process was still under way.
Constantinou concluded that reducing tobacco consumption was the main objective of the higher taxation, adding that giving up smoking would be the best choice for both people’s finances and, above all, their health.
Also read: Cyprus could join Schengen on 1 July 2027, Christodoulides says
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