Tim Phillips, Managing Director of TobaccoIntelligence, provided an overview with a frank assessment of the challenges—and opportunities—facing novel nicotine products under the EU’s evolving Tobacco Excise Directive (TED).
The Tax Credibility Paradox
Phillips underscored a unique irony: while taxation is often viewed as punitive, being taxed can actually confer regulatory legitimacy. “Without excise, regulators and politicians may not take the category seriously,” he warned. However, this recognition comes with risks, particularly if taxes are set too high.
Avoiding the Prohibition Trap
Phillips argued that overly aggressive taxation could have unintended consequences, potentially pricing nicotine pouches out of legal markets entirely. Such a scenario, he cautioned, would likely drive consumers toward illicit and unregulated products. “Excessive excise is, de facto, prohibition,” he noted, emphasizing that a balanced approach is critical.
Illicit Trade and Unintended Outcomes
Drawing parallels to Australia and other restrictive markets, Phillips highlighted the dangers of pushing consumers into black markets. These environments not only expose users to unsafe products but also undermine public health objectives.
The Clock Is Ticking
Phillips urged GINN members to act quickly. The TED revision process will advance rapidly once draft proposals are tabled. “Now is the window for the industry to engage,” he said, reinforcing Jacobo Truan’s earlier call for unified advocacy.
A Collective Responsibility
Phillips concluded with a reminder that this effort is not just about protecting commercial interests. Rather, it is about ensuring that adult consumers retain access to safer alternatives and that harm reduction remains at the core of EU nicotine policy.
Together, Truan and Phillips provided a roadmap for industry alignment and effective advocacy as Europe embarks on this critical regulatory journey.
