An infected snus battle threatens to blow up the EU's new budget. Finland and Sweden are on a collision course and the Swedish Snus Association is now sharply criticising Finland's demand to let Brussels take over the taxation of traditional snus.
“It would be hypocritical at the highest level if this is allowed to go through”, says Samuel Lundell, Snusarnas Riksförbund.
Finland wants to force Sweden to drop taxes on traditional snus in favour of the EU, according to Euractiv newspaper, which revealed a crucial conflict in negotiations on common nicotine taxes within the Union.
- Negotiations are already difficult, and a growing conflict between Sweden and neighbouring Finland over snus adds another layer of complexity. Sweden says it may block the entire new tax law if snus is included, while Finland says the same if it is not, writes Euractiv.
Common nicotine taxes to fund the EU
As previously reported by Vejpkollen, the proposal for common nicotine taxes has caused a heated debate between several EU countries. At the same time, the European Commission wants to push through a substantially increased budget for the years 2028-2032.
The common minimum taxes will not only increase government revenue from nicotine sales - 15% of the countries' tax revenue from nicotine products is also proposed to go directly to the EU administration as part of the increased funding.
Sweden: Risks hitting smoke-free alternatives
Sweden is one of several countries that have opposed common nicotine taxes, not least because the proposed taxes on nicotine pouches risk increasing the price of a can of white snus by almost 50%.
The Swedish government is committed to reducing the risks of nicotine use and sees smoke-free alternatives such as snus and nicotine pouches as market-based tools to reduce smoking. Today, around 16% of the population use snus, while less than 5% smoke.
Finland lifts border trade and smuggling
In Finland, the government has taken a different approach, focusing on nicotine use in general, rather than smoking alone. There, around 14% of the population smokes, while 4% use snus. In practice, smokeless nicotine products are more strictly regulated than cigarettes.
At the same time, the black market is growing, both for e-cigarettes and different types of snus. In the negotiations on common EU taxes, Finland has therefore highlighted cross-border trade with Sweden as a major problem.
- For several years, Finland has reported an increase in border trade, with many Finnish consumers crossing the border to buy snus. Specialised snus shops have sprung up at several Swedish border crossings, making it easier for Finns to buy the product and return home, Euractiv reports.
Snusarnas Riksförbund: ”High-level hypocrisy”
Negotiations on nicotine taxes - and, by extension, the entire EU budget - are now stuck on the snus issue. According to the Swedish consumer-driven interest organisation Snusarnas Riksförbund, both the EU and Finland are on thin ice.
- I note that the Finnish proposal to bring traditional snus under EU taxation is very worrying. Finland, which in many ways has a failed nicotine policy, now wants to interfere in the price of snus in Sweden - a country that has had great success in reducing smoking. "It's absurd," Samuel Lundell, chairman of the Swedish Snus Association, told Vejpkollen.
He believes that the debate on e-cigarettes and nicotine pouches stems from a political unwillingness to accept market solutions to reduce the harmful effects of smoking. At the same time, he sees a tendency among Swedish snus users to accept restrictions on other smoke-free alternatives, as long as traditional snus is left untouched.
- I understand if it feels like two different issues. But for us, they are about the same principles. Those of us who choose to use nicotine in a relatively safe way should have the right to do so without weird rules or unnecessary restrictions. It matters less whether you prefer fruit-flavoured or general portion nicotine pouches.
Snus no longer protected
Since the common nicotine taxes were put on the negotiating table, many people have assumed that tobacco snus was protected. This was not the case, says Samuel Lundell.
- All the talk of taxing white snus, the nicotine pouches, has led to a renewed debate even on the tax on traditional snus. This is something we warned about before - and unfortunately we seem to be right. The EU cannot ban a product from the single market at one end and decide on the tax levels and share the revenue at the other. It would be hypocrisy at the highest level if this is allowed to go through.
Negotiations on the new EU budget and nicotine taxes are ongoing in Brussels. Vejpkollen is following developments.
