The ongoing reform of the EU Tobacco Tax Directive creates an important opportunity to reassess how tobacco taxation can serve government fiscal objectives, particularly in raising stable and predictable revenues. This paper examines how different excise tax designs influence government revenue collection across EU member states, with a focus on the revenue effects of relying on specific versus ad valorem components. The analysis employs a fixed-effects panel regression covering 27 EU countries from 2010 to 2024. In the analysis two hypotheses are tested: first, whether systems with a high reliance on specific excise taxation generate higher per capita tobacco tax revenues; and second, whether the revenue impact of such systems depends on regular adjustments to the specific tax component, such as indexation. The results show that countries with a high share of specific excise taxes consistently collect more tobacco tax revenue per capita than those relying more on ad valorem taxation. The regression results suggest that the EU could potentially collect an additional €4 billion in revenue. However, this estimate should be interpreted with caution, as other unobserved factors may influence revenue outcomes. This increase is associated with a higher reliance on the specific component within the overall tax structure, even without raising tax rates, although other factors may also contribute. However, the analysis also reveals that, in the absence of indexation, increases in the specific share are associated with declines in revenue, likely reflecting erosion in real tax levels over time. By contrast, when specific taxes are regularly indexed, each additional percentage point in the specific share is associated with a positive and statistically significant change in revenue. Based on this evidence, two key policy recommendations emerge: 1. EU member states may wish to consider prioritising specific excise taxes over ad valorem components to enhance fiscal returns, while considering national circumstances and administrative capacity. 2. Specific tax systems should incorporate adjustment mechanisms to safeguard revenues against inflation and market shifts.