The Commission is set to propose an EU-wide tax on tobacco products like cigarettes and cigars, which are currently taxed by individual countries retaining the revenues.

The EU’s proposal comes alongside efforts to introduce new taxes on e-cigarettes and vapes, opposed by Italy, Greece, and Romania.
Although Sweden is not against the proposed new taxes, it stated that surrendering part of its national revenues to the EU is “completely unacceptable.”
The Commission also proposes a tax on discarded electrical equipment.
Wednesday’s proposal is anticipated to confirm 2021’s suggestions to implement a carbon border tax, which countries generally favor, and to share revenues from the emissions trading scheme (ETS).
This proposal is politically sensitive for Eastern European countries most impacted by ETS.
To appease critics, the Commission proposed that only a small portion of ETS revenues would contribute to the EU budget, with the rest remaining with national governments. It stated the plan to extend this scheme to buildings and road transport, termed ETS2 and set to take effect in 2027, will not be included in the EU budget.
National governments must unanimously agree on the new taxes across two years of challenging negotiations following the Commission’s proposal.













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