The European Commission's proposal for a significant increase in nicotine taxes continues to face opposition from several Member States. It is no longer just about higher prices for nicotine pouches and e-liquid - it is now clear that heat-not-burn products are also at risk of significantly higher taxes. ”The European Commission listens more to interest groups than to member states,” says the paper. EU Reporter.
Despite widespread criticism, the Commission and the Danish Presidency are moving ahead with the proposal. A key objection is that the Commission has dismissed calls for differentiated tax rates between different nicotine products, instead proposing further increases, particularly for heat-not-burn tobacco.
Danish tax requirement could double the price
In the original proposal, which Vejpkollen reported on in July 2025, the tax was set at €108 per 1 000 heatsticks or €155 per kilo. In Sweden, where the products are heated instead of burned and therefore do not generate smoke, they are currently cheaper than cigarettes. With a Swedish tax rate of €229 per kilo, Denmark is now proposing a sharp increase: €360 per kilo and a requirement that the tax be at least 55% of the retail price.
This would raise the price of a box of Terea from around SEK 55 to levels closer to cigarettes, which are taxed at SEK 39 per packet.
Harm minimisation takes a back seat
According to Eureporter, there are many indications that the Commission has not taken into account the objections raised by users, entrepreneurs and several Member States. One of the criticisms is that smokeless nicotine products risk becoming less attractive than cigarettes, despite their potential role in harm reduction.
”Member states asked for caution and evidence-based decisions. Instead, they got a proposal shaped by the demands of various interest groups for higher taxes,” an anonymous EU official told EuReporter.
Ten years of conflict over smoke-free nicotine
The issue of smokeless nicotine has long divided the Union. Since e-cigarettes, nicotine pouches and heat-not-burn products became established as alternatives to both cigarettes and nicotine medicines, the debate has intensified. Organisations linked to the pharmaceutical industry and medical associations have pushed for stricter rules, while tobacco companies and several user groups have argued for policies that make it easier for smokers to switch to less harmful products.
EU countries are moving in completely different directions
The differences between countries' strategies are significant. Sweden, Greece, Italy and the Czech Republic currently emphasise harm reduction and try to steer users away from cigarettes. Denmark, Belgium and the Netherlands are moving in the opposite direction, introducing progressively stricter rules for smoke-free products. In the Netherlands, legislation has even made cigarettes more accessible than e-cigarettes, as legislation on flavours and signage bans have forced many specialised shops to close.
Campaign material may have influenced the draft law
According to EuReporter interest groups partly funded by the EU's health and tobacco policy have had a major influence on the process. According to the newspaper, parts of the proposal - especially the increase for heat-not-burn products - are virtually identical to campaign material from Smoke Free Europe, which is funded by grants from the European Commission and, according to several sources, would likely benefit financially from new common taxes on tobacco and nicotine.
Biggest impact in the south and east
The impact is expected to be greatest in Eastern and Southern Europe, where smoking is more widespread, tobacco cultivation more important and the potential for harm reduction greater than in Denmark and the Netherlands, for example.
”The new TED amendments are seen as yet another example of how the EU system favours richer northern and western European countries at the expense of eastern and southern member states,” one diplomat told the paper. ”The proposal risks deepening divisions in the Union, weakening already vulnerable economies and driving more people towards black market and populist alternatives.”
Users against lobby organisations
In the run-up to the negotiations, almost 18,000 EU citizens submitted comments on the proposed taxes. Around 5,000 of these came from Sweden and concerned white snus. The price of white snus could double if the Commission's proposal gets the green light in the Council of Ministers. However, this would require an absolute majority. And given that several countries have protested against several of the proposals, this is not a very likely development.
“Whether the Danish presidency can secure consensus remains unclear,” writes Eureporter. “But the process has already highlighted a deeper question: Is it the governments of member states or various NGO networks that actually shape EU public health taxation?”
Sources in this article:
Danish Presidency and European Commission push ’super tax’ on heated tobacco as NGO influence overrides member state concerns
