Government Pays Tobacco Giant Over a Million in Subsidies While Fighting Smoking

Cigarette and vape manufacturer Philip Morris has received more than one million euros in subsidies from the Dutch government over the past three years. The subsidies were allocated for climate investments aimed at reducing CO2 emissions.

RTL Z discovered the payments in a public subsidy database. Philip Morris received 373,000 euros in 2023, 560,000 in 2024, and 103,000 in 2025, totaling over one million euros.

The company applied under the VEKI scheme, which provides funds for climate investments in industry that do not pay for themselves within five years. The money was used to replace a natural gas installation with a heat pump system that recycles residual heat from production.

Five years ago, Philip Morris also received a subsidy but returned it after plans changed. Now the company has received nearly four times that amount for its factory in Bergen op Zoom, where components for e-cigarettes and semi-finished parts for regular cigarettes are produced.

This puts the government in a contradictory position: it pursues a strong anti-smoking policy with high tobacco taxes and fewer sales points, aiming to reduce smoking and vaping, especially among young people. Yet it funnels taxpayer money to a major tobacco player.

The Ministry of Climate and Green Growth stated that prevention policy 'stands separate' from the subsidy scheme, and that Philip Morris meets the requirements. "The production of tobacco products is permitted in the Netherlands. As long as that production takes place, it is desirable from a climate and energy policy perspective for it to be as energy-efficient and climate-friendly as possible."