Issue link: https://read.dmtmag.com/i/1544874
Tobacco Asia 27 • Double your resource value • Use 100% expanded fine- cut for MYO and RYO • Untouchable product quality • Impex – pressure/vacuum technology • DIET - Dry Ice Expansion Technology AircoDIET has supplied more than 55 DIET plants worldwide, many of which have been turn-key. We continuously develop and refine the DIET process and our DIET plants have above 95% uptime with a dry yield better than 98.5% through the plant. www.aircodiet.com Over 100% tobacco expansion The next legislative wave Against this backdrop, the Commission has begun outlining a new wave of potential reforms. These include tighter product standards, expanded flavor restrictions, and broader limits on advertising and promotion. Policymakers are also considering wheth- er to extend excise duties to products that currently sit outside harmonized taxation rules, such as e-cigarettes and nicotine pouches. At the same time, discussions have turned to the possibility of expanding smoke- free rules to include vape products in public spaces. While these ideas remain under consideration rather than formal proposal, they point toward a more comprehensive and standardized regulatory approach. This push for harmonization reflects growing concern over fragmentation within the single market. Divergent national rules have created uneven conditions for manu- facturers and retailers, particularly in cross-border trade and compliance. A revised legislative package would aim to align definitions, product categories, and enforcement mechanisms more closely across member states. Economic stakes and employment As the policy debate evolves, the economic dimension has taken on greater promi- nence. Europe's tobacco and nicotine sector supports a broad ecosystem of employ- ment spanning agriculture, manufacturing, logistics, and retail. Critics of the Com- mission's approach argue that these contributions receive insufficient attention in the current evaluation, particularly when it comes to modeling the downstream effects of stricter regulation. Taxation adds another layer of complexity. Tobacco excise duties remain a sig- nificant source of government revenue in many EU countries, especially in Southern and Eastern Europe. Analysts caution that abrupt regulatory changes—particularly those affecting pricing or product availability—could disrupt these revenue streams and create fiscal uncertainty. Questions of competitiveness also come into play. Some economists warn that an overly restrictive regulatory environment could push investment and innovation beyond EU borders, particularly in next-generation nicotine products. This concern ties into broader discussions about Europe's industrial strategy and its ability to remain competitive in a global market. Illicit trade and enforcement pressures Alongside economic considerations, illicit trade continues to shape the policy conver- sation. Authorities across Europe report ongoing activity in counterfeit and untaxed tobacco products, often linked to organized cross-border networks. The causal link between regulation and illicit trade remains a central consideration, with many arguing that policy must reflect both enforcement capacity and market behavior. Credit: H.M. Revenue & Customs, CC2.0.