EU Plans Massive Tax Hikes on Nicotine Pouches

A leaked document reveals how the EU Commission is planning massive tax hikes on nicotine pouches, vapes, and heat-not-burn products. The proposal is set to be officially announced to the European Council on July 19.

Key Points

A leaked EU draft signals a July 19 unveiling of steep new excise duties on nicotine pouches, vapes and heat-not-burn products.
Critics say the hikes, nearly 800 % for pouches in Sweden, could devastate the alternative nicotine market across Member States.
While Brussels frames the move as a health measure, opponents warn it may drive ex-smokers back to cigarettes and strain future healthcare budgets.

Timeline & Next Steps: Will the Proposal Become Law?

The Commission claims it’s all about health, but Markus Lindblad, Head of Communications at Northerner, sees it differently:

"The proposal is punishing smokers trying to quit. This will be nothing short of a public health disaster. If this proposal goes through, we’ll see huge tax hikes on nicotine pouches and other alternative nicotine products. What does this mean for consumers? In a country like Sweden, for example, this will mean a tax increase of almost 800 percent. The risk is, of course, that this massive price hike will push a significant number of former smokers to return to deadly cigarettes."

Increased Tax Revenues, But At What Cost

The proposal is expected to generate a major boost to tax revenues in EU countries. However, there may be longer-term costs for health services and society.

"This is such a short-sighted proposal. In the long run, society will have to bear the cost of the damage caused by increases in smoking and smoking-related diseases,” says Lindblad. “The Commission’s own proposal admits that such a tax hike could lead to a collapse in the market for alternative nicotine products in some Member States. They are knowingly pulling the rug out from under everyone fighting for harm reduction."

Lindblad continues:

“Ironically, the Commission document repeatedly references the low smoking prevalence in Sweden and highlights that Sweden is a role model country on the verge of becoming smoke-free. It’s important to note that Sweden also has different tax rates for different nicotine products. The government deliberately keeps taxes lower on alternative nicotine products such as nicotine pouches and snus to encourage switching.

It is incomprehensible that the Commission does not see the link between lower taxes on alternative nicotine products and Sweden’s low smoking prevalence. Now, unless this proposal is stopped, Sweden, along with every other EU Member State, will be forced to raise taxes on alternative nicotine products drastically.”

Thankfully, after Brexit, UK nicotine pouch users are unaffected by the Commission’s disastrous proposal and can watch the Member States battle the Commission from the sidelines.

Read more commentary and the full leaked document on Pouch Patrol: The EU Commission Wants to Increase the Tax on Nicotine Pouches by 800 Percent - Pouch Patrol