The European Commission has come up with a new proposal for a revision of the Tobacco Taxation Directive, which foresees a significant increase in excise duties across the European Union – for both traditional and smokeless tobacco products [1]. According to official information from the EC, the new directive envisages a common approach to the taxation of tobacco and nicotine products, including e-cigarettes, heated tobacco and nicotine patches, which have not been harmonised at EU level so far. The Commission emphasises that the aim is to protect public health and reduce the prevalence of smoking. However, the experience of several Member States, including Latvia, shows that too rapid tax increases and prohibition policies can have the opposite effect – smuggling flourishes and budget revenues decrease. Therefore, when preparing and defending Latvia’s national position, caution must be exercised and the real situation in Latvia must be taken into account.