EU Vape, Heated Tobacco and Nicotine Pouch Tax Reform Reaches Ministerial Talks: Sweden Opposes Proposed 2032 Minimum of 50% of Retail Price or €50/kg for Nicotine Pouches
Summary
EU finance ministers are set to seek a common position on tobacco excise reform at the ECOFIN meeting on November 9. The Irish presidency's compromise would phase in minimum nicotine pouch duties starting at 10% of retail price or €30/kg in 2028, rising to 25% or €40/kg in 2030, and 50% or €50/kg in 2032. The reform would extend common EU minimum excise rules to e-liquids, heated tobacco and nicotine pouches, while traditional tobacco snus would remain outside the directives' scope. Sweden has formally stated it cannot support the current compromise, objecting to the nicotine pouch minimum tax level and the principle of purchasing-power adjustments. The package would also halve existing reference quantities for tobacco products carried across borders for personal use and introduce reference quantities for new categories. The European Parliament previously rejected the rates directive, but the legislative process remains ongoing, and unanimity among member states is required. At the time of reporting, no final agreement had been announced.
(Source:2Firsts)