The European Commission is set to propose its first bloc-wide taxes on tobacco, e-cigarettes, and large companies to address a €650bn pandemic loan. The plan aims to raise between €25bn and €30bn annually, which constitutes about 20% of the EU’s budget. The taxation on tobacco could generate €15bn each year, with member states charged based on their number of smokers. Countries like Greece, Germany, and Bulgaria may face significant impacts. Ursula von der Leyen, the European Commission president, is exploring these measures to manage the debt and fund a continent-wide rearmament. The proposal will ignite a two-year debate among member states regarding the EU’s financial future.
EU’s new tax plan to pay for Covid debt
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