Swedish 1TP8 users and snus users are affected very differently by the new EU tax proposal. The Cyprus compromise could keep e-liquid prices down for many 1TP8 users, but make nicotine-free liquids more expensive - while nicotine pouches are singled out for some of the EU's steepest tax hikes. The proposal is dividing member states and could determine whether it materialises at all.
Negotiations on the European Commission's proposal for new EU-wide taxes on nicotine products continue. The latest offer comes from Cyprus, which recently took over the presidency - and there is some relief compared to previous proposals. Taxes on both cigarettes and e-liquids are slightly reduced.
But when it comes to nicotine pouches, the tone is the same as before: loud, hard and uncompromising.
Flat tax on e-liquid - but shortfills will be more expensive
For Swedish vejp users, the Cyprus proposal does provide some relief. It still looks like it will be cheaper to buy nicotine from other EU countries than in Sweden - at least if the proposal goes through. Currently, nicotine liquid in Sweden is taxed at two levels, depending on the strength: SEK 2 per millilitre below 15 mg and SEK 4 above. The European Commission wanted to introduce the same model at EU level.
Cyprus is now opting for a much simpler solution instead: a flat tax of SEK 2 per millilitre - regardless of nicotine content.
This may sound like good news. But there is a catch. For those who buy nicotine to mix in shortfills, it will be significantly more expensive. This is because nicotine-free e-liquids will also be taxed - at the same SEK 2 per millilitre.
The Cypriot explanation is that they want to ”simplify administration”.
- "Over the years, our authorities have shown a clear interest in removing shortfills and nicotine-free liquids from the market, so this goes hand in hand with what is being proposed," says Niklas Linder, e-juice producer and founder of Swedish Mixology in Motala.
- This type of taxation, as it is already applied in Sweden, really only favours disposable products and pre-mixed liquids in small packages.
Less criticism than before - but far from consensus
Despite the criticism, Cyprus' proposal is seen as a compromise compared to previous proposals. When Denmark held the presidency, the first proposal was strongly criticised for completely ignoring both the relative risks between different nicotine products and the risk of a growing black market.
Countries such as Sweden and Italy instead emphasised the role of harm reduction in nicotine policy - a perspective that now seems to have been at least partially accepted.
Cyprus' proposal includes lower taxes on both cigarettes and smokeless nicotine products, as well as a generous adjustment period of four years with gradual increases. Heat-not-burn products (sold exclusively by tobacco companies), as well as high-nicotine strength e-cigarettes - such as nicotine shots and disposable vapes - will be less affected than before.
- It is moving in the right direction and is more grounded in reality," tobacco industry representatives told the newspaper. Euractiv.
Nicotine pouches - the killer issue that could bring down the whole proposal
But the willingness to compromise ends at the nicotine pouches.
As Vejpkollen previously reported, the European Commission wants to raise the common tax on nicotine pouches to the equivalent of €137 per kilogram - and this level is also included in the Cyprus proposal. For Sweden, where the use of white snus is the highest in the EU, this would mean an increase from the current SEK 207 per kilo to almost SEK 1 400.
In practice, this means that the price per can will rise from around SEK 13 to around SEK 37.
- "It's the same story as last time. "This is a key issue for Sweden, and if you don't come up with a more reasonable proposal, it won't go through," says Markus Lindblad, Head of Communications at Snusbolaget and international retailer Haypp, to Vejpkollen.
- Tax levels are still extremely high, both for nicotine pouches and cigarettes. Far from everyone accepts this. Neither Denmark nor Cyprus seem willing to compromise on this issue - and there is a risk that there will be no common tax at all.
How will increased taxes on smokeless nicotine products affect you?
Together with the newspaper Clearing the Air Vejpkollen has recently published a widget where you can easily calculate the price of different nicotine products in different EU countries - before and after the European Commission's proposed tax. Go to the Calculator here!
