Laws and market

EU fails to agree on a new tobacco tax: what it means for hookah and for Belgrade

13 November 2026

EU finance ministers have again failed to adopt new tobacco tax rules. The package has a separate line for hookah tobacco, so here is what it means for hookah fans in Belgrade.

What happened

On 9 November in Brussels, the finance ministers of the 27 EU countries discussed the revision of the tobacco taxation directive. Twenty-six countries backed the compromise; only Malta opposed it. EU tax decisions require unanimity, so the reform has been delayed again.

Irish finance minister Simon Harris, who leads the talks for the EU presidency, hopes to return to the file in December. The next meeting of ministers is set for 11 December. Malta insists that taxation is a national matter and considers the proposed minimum rates too high for its market.

Where hookah comes in

The current EU rules have barely changed since 2011. In the European Commission's July 2025 proposal, hookah tobacco got its own definition and its own minimum excise rate for the first time. According to Cigar Journal's calculations, the original proposal raised the minimum for hookah tobacco from 22 to 107 euros per kilogram. In the compromise text of late 2025, according to EU Reporter, hookah tobacco was grouped with smoking tobacco, so it cannot be moved into a cheaper category.

The final rates are not yet agreed. Even if countries reach a deal, the new minimums would not apply before 2028, according to Vaping Post.

What about Serbia

Serbia is not an EU member, and the directive does not apply to it directly: Serbia sets its own excise duties. As a candidate country it is gradually aligning its laws with EU rules, so the reform is worth following. But the 9 November decision changes nothing for hookah lounges in Belgrade on its own.

Meanwhile in the market

Global demand for hookah tobacco is holding up. AIR Global, owner of the Al Fakher brand, reported third-quarter results: flavoured shisha molasses shipments recovered by 5.8% and revenue grew 11.1%.

For hookah in Belgrade, come to Spički in Vračar: Mačvanska 10, daily from 12:00. Besides hookah, we have a kitchen and bar, two PS5 tables and a private Secret Room with five gaming PCs.

FAQ

Will hookah in Belgrade get more expensive because of the EU reform?

Not directly. The directive applies only in EU countries, and Serbia sets its own excise duties.

When could the new rates take effect in the EU?

Only after all 27 countries approve them unanimously and, according to Vaping Post, not before 2028. The next attempt at a deal is on 11 December.

What is proposed for hookah tobacco?

Its own definition and a higher minimum excise rate. In the Commission's original proposal the minimum rose from 22 to 107 euros per kilogram; the final figures are still under negotiation.