"Minister of Finance Elisabeth Svantesson should go further than just defending nicotine pouches. The proposed taxes on even nicotine-free e-liquids go completely against the whole idea of harm minimisation and must be fought just as hard"
This is according to Swedish e-juice manufacturer Linus Gustafsson in connection with the European Commission's proposal for new excise duties on tobacco and nicotine.
The European Commission's proposal for new and increased excise duties on smokeless nicotine products - as well as nicotine-free alternatives to cigarettes - is now out for consultation in Sweden. Interested parties now have until 16 September to respond. Negotiations in the Council of Ministers, where Sweden has the possibility to veto the proposal, are likely to start in the autumn.
Already Swedish tax on nicotine liquids
For Sweden, the proposal, if realised, would mean that the tax on nicotine pouches increase dramatically. For e-liquid with nicotine, however, there will be no major change.
"In practice, nothing changes for us because we probably stay at a higher level of tax than the European Commission proposes," says Niklas Linder, who manufactures e-liquid and runs the Motala-based company Swedish Mixology, and is active in the Electronic Cigarette Industry Association (BELC).
Different taxes for different strengths
E-liquid with nicotine up to 14 mg/ml is taxed at around2100 kroner per litre today and can only be sold in packs of 10 ml or less. The same applies to higher nicotine strengths, but then the tax is SEK 4200 per litre. In practice, this means that the tax on one mililitre of e-liquid is SEK 2.1 and 4.2 respectively.
Taxes on nicotine-containing e-liquid were already introduced in 2018 but were revised in 2021 to current levels. The tax is felt most by those who buy pre-mixed e-liquids with a nicotine content higher than 14 mg/ml - although companies have now switched to selling only nicotine at lower concentrations to keep prices down.
On so-called disposable models (with a higher nicotine content), the tax will be a relatively small part of the total price, as the models are legally not allowed to contain more than 2 millilitres of e-liquid.
Proposed tax on nicotine-free products
At the same time, nicotine-free liquids, known as shortfills, have escaped regulation (and taxes). These are liquids designed to allow users to refill (taxed) nicotine liquids themselves and thus control their nicotine levels as needed (and adapt to the device they are using). These liquids are often used with significantly lower nicotine levels than, for example, disposable models and pre-mixed small bottles - in practice between 3 and 12 mg/ml. It is this type of e-liquid that the Commission now wants to tax at the same rate as for nicotine-containing liquids (€2100 per litre).
"In other words, the system proposed by the Commission favours the sale of small 10 ml bottles and disposable models. At the same time, our authorities have over the years shown a clear interest in removing shortfills, nicotine-free liquids, from the market, so this goes hand in hand with what the Commission is now proposing," Mr Linder said.
"Defend both vejpning and white snuff"
Linus Koyuki Gustafsson, an e-juice manufacturer in Sweden specialising in shortfills and longfills, nicotine-free e-liquids that can be mixed with nicotine, believes that Swedish politicians should put their foot down when it comes to the new tax proposals. Minister of Finance Elisabeth Svantesson, together with Minister for Foreign Trade Benjamin Dousa passed out with the message to "fight for white snus" in the EU.
"For us, it is important that the Minister of Finance not only defends white snus but also opposes the proposal to tax nicotine-free e-liquids, which will hit many Swedes, both small business owners and users, who stay smoke-free with e-cigs. If she is going to fight for the nicotine pouches, she should fully include harm reduction" says Linus Gustafsson
"Nicotine-free prices are skyrocketing"
Although it is not yet clear what actually counts as a "nicotine-free e-liquid", Linus Gustafsson believes that prices in this popular, and relatively cheap, product category will soar if it is taxed.
"Since they categorise 0-15 mg in the same category, we will probably see the current tax of 2070 SEK/L on shortfills in Sweden. That's 207 excise duty, plus VAT, on a 100 mililitre bottle. This is, of course, completely unsustainable and the Minister of Finance should reasonably react to this." says Linus Gustafsson.
Taxes to fund the EU
The government has invited stakeholders to comment on the tax proposal before 16 September. Negotiations on the EU's new long-term budget will be lengthy, but the timetable foresees funding from 2028 to 2034. New nicotine taxes, together with taxes on electronic waste and large companies, will finance a large part of the activities.
