The Italian government has introduced draft budget legislation that moves planned tax increases on e-cigarette liquids and heated tobacco products forward by six months to July 1, 2027. Filed in late October 2026, the 2027–2029 budget bill also establishes official state price controls for e-liquids, bars exclusive supplier deals, and curtails single-brand product displays in retail shops.
The provisions remain subject to parliamentary debate and ministerial regulations before taking legal effect.
Accelerating the Tax Timeline for Vapes and Heated Tobacco
Under Law No. 199 of December 30, 2025, Italy established a multi-year tax calendar running through 2028. Article 33 of the new budget bill amends that timetable by shifting the final tax hike from January 1, 2028, to July 1, 2027.
Because an earlier statutory increase takes effect in January 2027, the market faces two separate tax adjustments within the same calendar year.
| Product Category | 2026 Rate | Scheduled (Jan 2027) | Proposed (July 2027) |
|---|---|---|---|
| Nicotine-containing e-liquids | 18% | 20% | 22% |
| Nicotine-free e-liquids & flavors | 13% | 15% | 17% |
| Heated tobacco products (HTPs) | 40.5% | 41% | 42% |
These percentages represent statutory calculation coefficients based on cigarette-equivalent excise benchmarks rather than flat ad valorem retail levies. According to technical reports cited by Sigmagazine, moving the tax date forward is projected to raise €9.45 million in additional state revenue in 2027, expanding to an estimated €18.9 million on a full-year basis.
Regulating Retail Prices Through the ADM Agency
Article 34 of the draft law extends official tobacco price-listing mechanisms to e-liquids. The Customs and Monopolies Agency (ADM) will create and publish an official retail price registry for all legal products.
Under the planned framework:
- Manufacturers or authorized import representatives must submit formal retail price applications to the ADM.
- The agency will operate within a 90-day window to register new items and a 40-day window to approve price revisions.
- Distributors and retailers maintain commercial discretion over wholesale terms, but retail sale figures must reflect registered amounts.
Restricting Exclusive Deals and Single-Brand Retail Displays
The legislation introduces rules intended to curb anti-competitive practices across tobacconists, specialty vape shops, and pharmacies. The Ministry of Economy and Finance will issue enforcement rules within 180 days of enactment to enforce commercial neutrality.
Key market restrictions under Article 34 include:
- Banning Exclusive Contracts: Retailers cannot sign exclusivity agreements with manufacturers or wholesalers.
- Display Limits: Outlets cannot maintain product showcases dominated exclusively or predominantly by a single brand.
- Commercial Incentives: The law prohibits supplier rebates, bonuses, or services tied to sales volumes or market-share targets.
- Bundled Sales: Vendors may not condition the purchase of one product on the acquisition or free transfer of another.
Supply chains will also face structural changes. Foreign manufacturers inside or outside the European Union must route products through ADM-authorized warehousing operators located within Italy. Sourcing violations or failure to keep proper tax documentation carry fines between €5 and €258 for minor breaches, while serious offenses risk license suspensions.
Legislative Schedule and Transition Periods
The draft budget cleared cabinet approval on October 28, 2026, and was registered by the Presidency of the Italian Republic on October 30. The proposals must pass both houses of parliament before entering into law.
The draft allows authorized warehouses and dual-license operators a one-year transition period to adapt logistics to the new sourcing rules. Retailers holding non-compliant stocks affected by tank capacity restrictions may accept warehouse transfers until June 1, 2027, with retail sell-through allowed until December 31, 2027.
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