Published 2025-07-18
Confirmed: EU to Tax Nicotine Pouches and Vapes in Budget Grab
The European Commission has made public its proposals to create new taxes on nicotine products in a bid to fund its long-term budget needs. The Northerner have reported on the leaks and early versions of their plan, but now the official figures have been made public.
Key Points
- The EU has officially published proposals to tax nicotine pouches, vapes, and heated tobacco products
- The plan aims to raise €15 billion annually
- The proposal seems to contradict harm reduction efforts, as nicotine alternatives support smoke-free goals
- Member states including Sweden, Italy, and Greece are expected to oppose the plan
Prices of Nicotine Alternatives Could Soar Under Tax Hike
The Commission is proposing to raise a massive €15 billion a year through tobacco and nicotine taxation.
For the first time, products such as nicotine pouches, vapes, and heated tobacco products will be subject to EU-wide minimum excise duties.
These duties could see massive increases in prices on alternative nicotine products such as pouches and vapes. For a nicotine pouch user in Sweden for example, the increase in tax on nicotine pouches could be up to 800%.
Does the EU’s New Plan Undermine Harm Reduction Goals?
This proposal is supposedly to help the EU meet its public health objectives to create a smoke-free generation by 2040.
However, given the evidence that alternative nicotine products are an important part of any sensible strategy to achieve a smoke-free future, why would you massively increase the taxes on them?
Tobacco remains the number one cause of preventable death in the EU, not nicotine. Countries that have incorporated alternative nicotine products into their smoke-free strategy, such as Sweden and the UK, have seen positive results. It makes sense to keep alternative nicotine products at a low cost to encourage smokers to switch.
Has the EU given up using evidence for its policy-making? Or is this simply a money grab by the European Commission dressed up as a public health policy?
Backlash Expected from Several Member States
One thing is for sure. The consumers in countries like Sweden, Italy, and Greece will not be happy with this proposal, and we can expect strong opposition from these member states.
The proposal will divert funds from their national budgets, slow progress on smokers switching to alternative products, and may further incentivize illicit trade and the black market.
The Swedish government has already called the proposals ‘unacceptable’, and we can expect this proposal to lead to a battle between member states and the European Commission.
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