Italian smokers face higher retail prices under draft provisions of the 2027 budget law (Manovra 2027), which schedules two separate cigarette excise tax increases for January and July 2027. The measure seeks to generate approximately €112 million to help cover the costs of Italy's €26 billion national budget.
Phased Tax Rates and Estimated Pack Prices
According to budget projections, the specific excise duty on cigarettes will increase from €32.00 to €35.50 per 1,000 cigarettes on January 1, 2027. A second adjustment on July 1, 2027, will raise the rate to €38.50 per 1,000 cigarettes, advancing a hike originally planned for 2028 under previous legislation.
| Effective Date | Excise Duty (per 1,000 cigarettes) | Estimated Pack Price Increase |
|---|---|---|
| January 1, 2027 | €35.50 | ~€0.25 |
| July 1, 2027 | €38.50 | ~€0.15 |
Retail impact estimates suggest a total cost increase of roughly €0.40 per pack across 2027. However, the exact shelf price depends on tobacco manufacturers, who can absorb part of the tax increase or transfer the cost to consumers. Official consumer prices will be determined only after updates from the Customs and Monopolies Agency (ADM).
Parliamentary Approval and Regulatory Scope
The proposed hikes remain subject to parliamentary review. As documented in the Chamber of Deputies budget draft (A.C. 3174) and its legislative project record, parliamentary committees may table amendments to revise the dates and tax amounts before final passage.
The draft text leaves several policy areas undefined, including minimum excise rules on fine-cut roll-your-own tobacco, as well as the tax treatment of heated tobacco and e-cigarettes. To take effect by January 1, 2027, the budget law must pass both houses of Parliament and appear in the Official Gazette by December 31, 2026.
