The EU Commission Wants to Increase the Tax on Nicotine Pouches by 800 Percent
12th Jun 2025
A leaked document from the EU Commission now proposes massive tax hikes on nicotine pouches, vapes, and heat-not-burn products. The proposal is set to be announced to the Council on July 19.
The Commission claims it’s all about health, but Markus Lindblad, Head of Communications at Pouch Patrol, sees it differently:
“The proposal is punishing smokers trying to quit. It’s nothing short of a public health disaster. If this goes through, we’ll see a minimum tax on nicotine pouches of €149.67 per kilogram. For Sweden, this means an increase of almost 800 percent – from SEK 207 to SEK 1,639 per kilogram. The risk is, of course, that a significant number of former smokers will return to deadly cigarettes.”
Increased Tax Revenues at the Expense of a Sicker Population
The proposal is expected to boost tax revenues by €5 billion annually.
“But it’s such a short-sighted proposal. In the long run, society will have to bear the cost of the damage caused by increased smoking in the form of a sicker population,” says Lindblad. “Even the Commission’s own proposal admits that the tax hike ‘estimates that for some Member States indicate a possible market collapse’, should it become reality. They are knowingly pulling the rug out from under everyone fighting for harm reduction.”
Lindblad continues:
“The document repeatedly highlights how low smoking prevalence is in Sweden and that Sweden is a role model on the verge of becoming smoke-free. Sweden also has the lowest tax rates relative to household purchasing power and differentiated taxes between more and less harmful nicotine alternatives. The fact that no one questions how this fits together, and instead does the exact opposite, is completely incomprehensible. Sweden will be forced to raise all tax levels – and thus prices – drastically unless this proposal is stopped.”
Exemptions for Tobacco Snus and the Pharmaceutical Industry
“The proposal is also inconsistent in its scope. Not only is tobacco snus excluded – which would mean the tax on nicotine pouches becomes 380 percent higher than for tobacco snus – but the pharmaceutical industry is also exempt. As a result, nicotine products will be sold with different tax rates.”
Vapes and Heat-Not-Burn Products Will Also Be Taxed Differently
To make matters worse, the very form of heated tobacco products – such as vapes and heat-not-burn – will determine whether the tax is calculated per piece or by weight. This means they will be taxed differently despite significant similarities.
“The proposal seems entirely ill-conceived and lacks competitive neutrality. This must be stopped,” concludes Markus Lindblad.
Read the full leaked document here:
“Commission staff working document impact assessment report” accompanying the document “Proposal for a Council directive on the structure and rates of excise duty applied to tobacco and tobacco related products”.
