Spain's Tobacco Industry Contributed a Record €89.65 Million in Taxes

Regulations by 2FIRSTS.ai
Apr.19.2024
Spain's Tobacco Industry Contributed a Record €89.65 Million in Taxes
Spain's tobacco industry contributed a record €89.65 million in taxes, despite a 2.91% decline in cigarette sales.

According to a report by the Spanish American News Agency on April 9th, despite the Spanish Ministry of Health launching a comprehensive crackdown on the tobacco industry, tobacco products contributed a total of 89.65 million euros to the treasury in the past fiscal year, including 72.10 million euros in specific taxes and an additional 17.55 million euros in value-added tax. This figure not only represents a 2% increase in tax revenue compared to last year, but also signifies a historic high for tobacco tax revenue. Even though cigarette sales volume decreased by 2.91% last year, the increase in prices resulted in an overall rise in tax revenue. Data from the Spanish Tobacco Market Commission (Comisionado del Mercado de Tabacos) shows that cigarettes are the main source of specific tax revenue, contributing a total of 63.28 million euros in tax revenue, a 1.5% increase from 2022.

 

Despite the Spanish government's intention to raise cigarette taxes in order to increase prices and reduce consumption, such measures have not had the desired effect globally. Instead, the proposed actions have resulted in an increase in illegal activities, including smuggling and counterfeiting. Within the industry, concerns are growing that this could be the future for Spain. Following approval of a comprehensive plan for smoking prevention and control, Health Minister Mónica García began the process yesterday to consult the public on proposed amendments to Royal Decree 579/2017 by April 23rd.

 

This royal decree covers some issues related to the manufacturing, presentation, and sale of tobacco, including the prohibition of additives in tobacco and related products, such as e-cigarette vaporizers. After the regulation is modified, all cigarette packaging will be standardized, and the space for brand identification will be minimized. This practice has already been implemented in countries like Australia, France, Norway, and Denmark, but it has sparked strong opposition within the tobacco industry in Spain, as they believe it is equivalent to infringing on brands and will not achieve the desired effects.

 

However, the Minister of Health insists that scientific evidence shows that the new packaging is an "effective" measure. "It helps the packaging itself no longer act as advertising, reducing its attractiveness, and also helps in making the decision to quit smoking," he explained. Despite strong opposition from tobacco companies and retailers, the Ministry of Health still plans to reform the regulations. The Minister of Health emphasizes that any business interest group trying to influence the priority of protecting public health will be obstructed.

 

On the other hand, the anti-tobacco plan also includes equal adjustments to tobacco-related products such as e-cigarettes and traditional tobacco products. In addition, the collaborating finance department will increase taxes on new tobacco products, with the aim of using this tax revenue for health policies and further increasing taxes on traditional cigarettes. The government's plan is also to reduce smoking-related illnesses by increasing smoke-free areas.

 

In Spain, 140 people die from smoking every day, and 460 teenagers start trying smoking habits daily. Additionally, the plan involves research on tobacco and its health effects. The Ministry of Health also plans to implement this plan with the support of five regions, even though all other regions are against it. This plan was passed with a 90% approval under the guidance of Health Minister Monica García, with the 90% proposals sent from the autonomous regions to García's department. One of the new features of the final proposal is the elimination of the ban on smoking in private spaces such as cars, when children or pregnant women are present.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Australia Adds 6-Methylnicotine to Schedule 9 Prohibited Substances, Effective October 1
Australia Adds 6-Methylnicotine to Schedule 9 Prohibited Substances, Effective October 1
Australia's Therapeutic Goods Administration published a final decision on September 25 to classify 6-methylnicotine as a Schedule 9 prohibited substance under the Poisons Standard, effective October 1, 2026. TGA said the chemical has been reported in e-cigarette liquids sold in Australia and marketed as nicotine-free or nicotine alternatives, while evidence also indicates its use in preparations such as oral pouches. The government originally proposed a Schedule 7 classification but ultimately adopted the stricter Schedule 9 designation, citing acute toxicity, dependence risk, use in unapproved consumer products and misleading marketing.
News
Sep.29 by 2Firsts Perspectives
North Carolina Tightens Vape Product Directory Enforcement, Expands State and Local Powers as Violators Face Fines, Product Seizures and License Suspension or Revocation
North Carolina Tightens Vape Product Directory Enforcement, Expands State and Local Powers as Violators Face Fines, Product Seizures and License Suspension or Revocation
North Carolina has expanded enforcement of its vapor product directory rules, authorizing more state and local law enforcement participation and establishing a task force led by the State Bureau of Investigation. The legislation requires at least one unannounced compliance inspection annually for retailers, distributors and wholesalers handling covered products. Penalties effective October 1, 2026, include civil fines of $500–$750 for a first violation and $1,000–$1,500 for repeated violations within 12 months, along with potential license suspension or revocation. Manufacturers may face penalties of $10,000 per unlisted product. The measures strengthen the product directory system established in 2024.
Regulations
Oct.28
South Korea Imports 12,126 Kg of Nicotine Analogues From April to August After Bringing Synthetic Nicotine Under Tobacco Law
South Korea Imports 12,126 Kg of Nicotine Analogues From April to August After Bringing Synthetic Nicotine Under Tobacco Law
South Korea's liquid-vape market is showing changes across raw-material imports, product types and sales channels after synthetic nicotine came under the Tobacco Business Act on April 24. Customs data show nicotine-analogue imports totaled 12,126 kilograms from April through August, while synthetic-nicotine imports over the same five months totaled 231,663 kilograms, just 39.3% of the amount imported in March alone. Physical liquid-vape stores tracked in Seoul and Gyeonggi Province fell 9.9%, unmanned outlets edged higher and online sales listings increased from 27,774 to 42,437. Government testing of 105 liquid inhalation products promoted as nicotine-free separately found nicotine in 13 and 6-methylnicotine in 12.
Sep.22
Product | KT&G Launches lil HYBRID 3.0 Misty Rosé Edition II in South Korea With Two Pink Finishes at 88,000 Won
Product | KT&G Launches lil HYBRID 3.0 Misty Rosé Edition II in South Korea With Two Pink Finishes at 88,000 Won
South Korean tobacco company KT&G launched the limited-edition lil HYBRID 3.0 Misty Rosé Edition II on September 30, 2026, following the original Misty Rosé Edition introduced in November 2025. The new release comes in two pink finishes, Bloom Rosé and Viva Rosé, each priced at 88,000 won. Both versions initially went on sale through the lil Store online shop and lil MINIMALIUM flagship stores. From October 7, Bloom Rosé became available at approximately 1,500 lil Station retail outlets nationwide. The release retains the existing lil HYBRID 3.0 hybrid heated tobacco platform, with changes focused on exterior design and distribution.
product
Oct.10
Indiana Halts Sales of Elf Bar, Lost Mary, MR FOG and iJOY Vapes Under Foreign-Adversary Rules; Some Products Return After Compliance Filings
Indiana Halts Sales of Elf Bar, Lost Mary, MR FOG and iJOY Vapes Under Foreign-Adversary Rules; Some Products Return After Compliance Filings
Indiana's Alcohol and Tobacco Commission (ATC) ordered tobacco certificate holders in September to remove certain vaping products marketed under Elf Bar, Lost Mary, MR FOG, iJOY and other brands from inventory under the state's foreign-adversary product law. The agency later listed 257 MR FOG products and 77 Lost Mary product entries as lawful for sale. The Lost Mary revision expressly stated that compliance evidence had been received for 20 additional products. 2Firsts compliance expert Kurt said potential filings could include e-liquid and ingredient-origin records, U.S. nicotine-analog supply-chain documentation and FDA premarket application status.
Regulations
Oct.08
JTI Liggett Puts U.S. Value Cigarette Brands in Spotlight at 2026 NACS Show
JTI Liggett Puts U.S. Value Cigarette Brands in Spotlight at 2026 NACS Show
At the 2026 NACS Show in Las Vegas, JTI Liggett highlighted its value-priced cigarette portfolio, including LD and Montego, following JT Group's acquisition of Vector Group. The company's U.S. business reported market share gains, with LD sales volume rising 32.6% in the first half of 2026. Meanwhile, Ploom was displayed separately at Altria's booth under an existing partnership. JTI Liggett booth staff told 2Firsts that the company had not yet launched nicotine pouch products in the United States.
EXPO
Oct.09