EU insurers wants more action to protect Europe’s young

While welcoming the European Commission’s proposed revision of the Tobacco Taxation Directive (TTD) as a step forward, the European Social Insurance Platform (ESIP) urges the EU to go further in several key areas to maximize its public health benefits.

“As Europe’s social and health insurers, our members witness daily the human and financial burden of tobacco-related disease,” ESIP stated. “A coherent and ambitious Tobacco Taxation Directive is essential to protect health equity and prevent addiction.”

Representing statutory social insurance organizations across 19 EU Member States and Switzerland, ESIP’s 46 members provide coverage to over 370 million Europeans. As a major alliance of public insurers, ESIP’s perspective carries weight: its members see the health and economic costs of tobacco-related disease.

“Tobacco taxation is one of the most effective tools to prevent addiction and protect young people,” ESIP said, noting that tobacco remains the leading cause of preventable death in Europe.

In its official feedback to the European Commission, the platform endorses the proposed higher minimum tax rates and the inclusion of novel tobacco and nicotine products under the directive’s scope. It also praises measures to enhance controls on raw tobacco to help combat illegal production and tax fraud.

Advertising ban

In addition to taxation, ESIP supports EU-wide bans on advertising and flavourings for novel tobacco and nicotine products, as well as plain packaging to reduce their appeal, mirroring existing restrictions on traditional tobacco.

Novel nicotine products such as e-cigarettes and nicotine pouches are increasingly marketed to young people through social media and lifestyle-oriented campaigns. Appealing flavours like fruit and confectionery play a significant role in attracting new users, making these products particularly enticing to adolescents.

The platform also wants the directive to be strengthened in the following areas:

Annual indexation: ESIP advocates for reviewing minimum tax rates annually, rather than every three years as currently proposed; it supports adjustments based on purchasing power parity (PPP) to maintain deterrent effects and reduce cross-border shopping.

Equal taxation across products: Taxes on heated tobacco, fine-cut tobacco, and e-liquids - including nicotine-free variants - should be aligned with those on cigarettes to prevent substitution and maintain price coherence.

Tighter controls on raw tobacco: ESIP advocates full inclusion of raw tobacco in the EU’s Excise Movement and Control System (EMCS) to strengthen traceability and curb illicit trade.

Shorter transition periods: The group urges the EU to accelerate implementation for cigars, waterpipe tobacco, heated products, and nicotine pouches to quickly realize health gains, especially with young people in mind.

In conclusion, the platform emphasizes that the revised directive should treat taxation in this instance primarily as a public health instrument, rather than just a fiscal one.