Spain Introduces New Tobacco Law

The Ministry of Finance and the Ministry of Health are exploring ways to reduce tobacco consumption through two different approaches, with the ultimate plan to formulate a new Tobacco Market Regulation and Taxation Regulation, which has not been revised since 1998.

 

In Spain, tobacco use currently generates €9 billion in tax revenue annually, and the Spanish Ministry of Health is considering further increasing tobacco taxes. Health Minister Salvador Illa stated that different tobacco products, such as combustible cigarettes and roll-your-own cigarettes, currently have different tax rates, with the aim of taxing them in the same manner.

Interestingly, the ministry plans to implement price increases without warning to avoid bulk purchases in advance. Additionally, the Ministry of Health is also considering expanding smoke-free areas to prohibit smoking in private vehicles, especially when children are present.

 

In line with WHO and EU TPD frameworks

At the same time, the Ministry of Finance hopes to tighten the tobacco regulatory framework to align with WHO and EU TPD standards, particularly regarding regulations on vaping products and other electronic devices. In light of this, plans are currently underway to increase sanctions on importers to reduce the illegal trafficking of tobacco products.

 

The new tobacco bill draft is expected to be ready by September so that changes can be submitted to the National People's Congress before the end of the year.