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

HG Innovation, linked to IMiracle and ELFBAR, wins China patent for 6-methylnicotine salts covering vaping and oral products
HG Innovation, linked to IMiracle and ELFBAR, wins China patent for 6-methylnicotine salts covering vaping and oral products
HG Innovation Limited has been granted a Chinese invention patent covering 6-methylnicotine salt formulations and their use in oral and vaping products. The technology forms salts between 6-methylnicotine and alicyclic carboxylic acids, with granted claims extending to oral products, atomization substrates and electronic atomization devices. Applicant-generated tests reported differences in oxidation stability, in-vitro cytotoxicity and aerosol heavy-metal performance compared with selected benzoate or lactate controls. HG Innovation is directly linked to the broader IMiracle and ELFBAR business network.
Sep.04
Product | SnowPlus Launches Nicotine-Free DASH in South Korea, Localising an Established Disposable Platform
Product | SnowPlus Launches Nicotine-Free DASH in South Korea, Localising an Established Disposable Platform
SnowPlus has introduced a nicotine-free version of DASH in South Korea, adapting an existing overseas disposable platform for the local market. The Korean version retains the series’ flat duckbill-style mouthpiece, ceramic heating architecture and disposable form factor while reducing nicotine content to 0%. By comparison, the overseas DASH 4000 platform typically features 7.5ml of prefilled e-liquid, up to 4,000 puffs and a 530mAh rechargeable battery, with nicotine-containing variants available in some markets. The product update centers on formulation localisation rather than a new hardware generation.
Aug.31
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
BAT Rothmans says it previously considered exiting South Korea's vaping market because of competitive pressure from unregulated products, but is now reassessing conditions following changes to the country's nicotine regulatory framework. Vuse and other BAT vaping products remain available through existing distribution channels. The statement followed a South Korean media report that interpreted BAT's broader withdrawal from selected Vapour markets as a full exit from South Korea. Meanwhile, Philip Morris International launched VEEV inPRIME in the country in June and began expanding distribution to around 14,000 convenience stores and other retail channels in July. The contrasting moves highlight differing investment strategies as South Korea's regulated vaping market evolves.
Aug.14
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
The Zhengzhou Tobacco Research Institute of China National Tobacco Corporation has filed a patent application for an end-to-end method to analyze the migration and transformation of chemical compounds in heated tobacco products. Using GC-Orbitrap/MS non-targeted analysis, the method compares tobacco substrate and aerosol samples to distinguish compounds transferred directly from the substrate from those newly formed during heating, while also calculating transfer rates. In an example involving nine heated tobacco products, the patent identified 17 newly formed thermal decomposition compounds and 38 transferred compounds.
Aug.13
Trump Names Darrell Scott as CDC Tobacco Health Adviser, Citing Tobacco Risks and Harm-Reduction Solutions
Trump Names Darrell Scott as CDC Tobacco Health Adviser, Citing Tobacco Risks and Harm-Reduction Solutions
U.S. President Donald Trump has named Pastor Darrell Scott to serve as an adviser on tobacco health issues on the Centers for Disease Control and Prevention’s Advisory Committee to the Director. Trump said Scott would focus on the burden of tobacco-related disease and help examine ways to protect Americans from dangerous tobacco products while supporting solutions that reduce harm. Scott’s public career has largely centered on faith leadership, community advocacy and politics.
Sep.02
Australian Coalition Taskforce Calls for 80% Tobacco Tax Cut to Combat Illicit Market
Australian Coalition Taskforce Calls for 80% Tobacco Tax Cut to Combat Illicit Market
According to SGST on August 26, 2026, Australia’s Coalition Illegal Tobacco Taskforce released a report recommending an up to 80% cut in tobacco excise to reduce the appeal of the illicit tobacco market. The report claimed organised crime groups now control about 80% of Australia’s tobacco market and argued that high excise rates have widened the price gap between legal and illegal products. The recommendation remains a policy proposal and has not been adopted by the Australian government, which said its focus remains on enforcement, compliance and additional resources.
Aug.27