Greece is lobbying the European Commission to ease its proposed large tax increases on cigarettes, roll-your-own tobacco, e-cigarettes, and heated tobacco, warning that higher duties could increase smuggling and harm its domestic tobacco industry.

Speaking at the ECOFIN council meeting of EU finance ministers, Greek Finance Minister Kyriakos Pierrakakis called on the Commission to implement lower tax rates than those currently being discussed, extend the transition period, and base taxes on product weight rather than the number of units.

Under the Commission’s draft plan, the tax on roll-your-own tobacco could increase by 258 percent, and cigarette taxes by 139 percent, while vapor and heated products would also face higher duties than currently imposed. The proposal has been led by northern European states and is supported by European Taxation Commissioner Wopke Hoekstra, who aims for it to be adopted by next summer.

Greece, along with Italy and Romania, raised concerns that such aggressive tax hikes—given Greece’s geography and history—could promote illegal trade. Pierrakakis stated, “based on our geographical location, it has been observed in the past that the increase in these tax rates leads to an increase in smuggling.”

Some 16 EU countries, led by the Netherlands, co-signed a submission urging uniform minimum rates to prevent distortions within the single market. Meanwhile, countries opposing this argue that the existing 2011 tobacco tax directive must be updated to include newer nicotine products, but reforms should consider national contexts and enforcement challenges.