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Taxes Make Up Most of the Price of Cigarettes This month, the Tax Foundation, which has a branch in Brussels, reported that "cigarette smokers in the European Union pay far more in excise taxes than they do for the cigarettes themselves." Report authors Jacob Macumber-Rosin and Adam Hoffer wrote that excise taxes in the E.U., which are intended to deter smoking as much as to raise revenue, start at the equivalent of $2.11 per pack and that the "total excise duty is at least 60 percent of the national weighted average retail price." Value-added taxes are tallied after excise duties are levied