The European Commission has proposed major changes to the EU Tobacco Tax Directive. For the first time, common EU tax rules would cover nicotine pouches — often called “white snus.” The Commission says the goal is to create a level playing field between countries and reduce tax-driven cross-border shopping. But if the new EU nicotine tax is accepted, the prices will surge and one of the most powerful alternatives to dangerous smoking will be lost.
The proposed plan
The plan classifies nicotine pouches as a tobacco-related product. This is in it self not so strange considering that the nicotine used is usually derived from tobacco plants. It also introduces a new EU-wide minimum excise duty. The tax would roll out in two stages. From January 1, 2030, member states must levy at least 25% of the retail price or €71.50 per kilogram. From January 1, 2032, the minimum rises to 50% of the price or €143 per kilogram. Authorities would review rates every three years.
In a separate budget proposal, the Commission wants 15% of member states’ tobacco excise revenues to go directly to the EU. This measure, called TEDOR — Tobacco Excise Duty Own Resource — could bring in €11 billion annually. Unlike the directive, TEDOR requires unanimous approval from all EU countries.
Consumers in low-tax countries would likely face sharp price hikes. Sweden, where white snus has much lower taxes than the proposed EU minimum, could see the steepest increases. So why are politicians and decision makers up in arms over this proposal?
A Growing Backlash
The proposal has sparked strong resistance. Sweden has taken the lead in opposing it. Finance Minister Elisabeth Svantesson called the plan to give tax revenue to the EU “unacceptable.” She promised to “take the fight” to Brussels. Swedish EU Affairs Minister Jessica Rosencrantz (photo) backed her position and stressed that taxation has always been a national power.
Swedish MEP Jessica Polfjärd warned that the plan could push excise rates above SEK 1,600 per kilogram. She said that is more than seven times the current Swedish rate. She also argued that the plan is misguided public health policy, since white snus is far less harmful than cigarettes.
Sweden is not alone…
Other countries also voice concern. Italy, Greece, and Romania have questioned the idea of raising minimum excise levels. Many politicians dislike handing the EU a direct share of national tax revenues. Critics warn that higher taxes could fuel smuggling and illicit trade rather than reduce nicotine use.
Supporters counter that higher, harmonized taxes can deter young people from starting nicotine use. They also argue that common rules would close loopholes that let consumers shop in lower-tax countries.
Both the harmonized tax and TEDOR proposals need unanimous approval. That requirement sets the stage for long negotiations and likely compromises before the measures become law.
