The market cigarettes in Italy they are preparing for a three-year period of increases scheduled of the prices and Excise, with an estimated impact of over one billion euros on the state coffers. In the Budget Law 2026, approved by the government led by Giorgia Meloni and now under consideration by Parliament, envisages an increase in excise duties on tobacco products. This increase will have a direct impact on cigarette prices, from the finely chopped tobacco, electronic cigarettes and heated tobacco while for i cigars and nicotine sachetsSpecific regulatory measures are planned. The government's aim is to introduce gradual increases, avoiding market shocks and countering the risk of increased smuggling, while preparing for the future European directive on tobacco excise duties (TED), which will introduce new common rules for all EU countries.
Cigarette Price Increases 2026: How Much Will a Pack Cost?
Cigarette prices will be subject to gradual increases. In 2026, the expected increase is approximately 14-15 cents per pack, with further modest increases in 2027 of between 10 and 12 cents and in 2028 of around 12-13 cents. Overall, over the three-year period 2026-2028, the total price increase will be approximately 60 cents. The increases are not automatic: manufacturers will be able to decide whether to pass the entire price increase on to consumers or absorb a portion of it, allowing for greater market flexibility.
During the press conference following the Council of Ministers, Economy Minister Giancarlo Giorgetti confirmed the increase clearly: "Cigarette prices? Just a little, but yes, they are increasing."
Rolling tobacco and cigarettes: more significant increases
Rolled tobacco for DIY cigarettes will see a more significant increase, reaching approximately 50 cents per pack in 2026, equivalent to 22 cents for a standard pack of 20 cigarettes. Subsequent increases, in 2027 and 2028, will be less than 10 cents per year. Cigarettes will also see more significant increases: 2026 will see an increase of approximately 28 cents per pack, with smaller increases thereafter.
Cigarette Price Increases: How Much Will IQOS, Glo, and Pulze Cost?
The increase will also affect the heated tobacco and electronic cigarettes, two segments experiencing strong growth among Italian smokers. According to the draft budget, heated tobacco – as IQOS, glo e Pulze – will see a progressive increase up to 42% by 2028, with average increases of 10-13 cents per year. For the e-cigarette liquids, an increase of around 12 cents is estimated as early as 2026.
The government's goal is to align the taxation of these products with that of traditional tobacco, in view of the future European Directive.
No increase for cigars, but new rules for nicotine sachets
No increases are foreseen for the cigars, but the 2026 budget introduces new rules on nicotine sachetsEach sachet can contain one maximum of 16,6 milligrams of nicotine, and the sale will be allowed only in tobacconists, excluding online sales. Packages must clearly display the nicotine dose and health warnings, and must have child-resistant closures to ensure greater consumer safety.
