GINN has formally contributed to the European Commission’s Consultation on the revision of Council Directive 2011/64/EU, which governs excise duties on tobacco and related products.
We welcome the inclusion of nicotine pouches in this revision, provided they are recognized as a distinct, clearly defined category separate from traditional tobacco products.
A science-based approach is essential. Nicotine pouches differ fundamentally from combustible and smokeless tobacco: they are tobacco-free, non-inhaled, and deliver nicotine in a way that dramatically reduces exposure to harmful compounds. If appropriately regulated, these products can contribute meaningfully to Europe’s tobacco harm reduction (THR) goals while maintaining fiscal stability and consumer protection.
Why Categorization Matters
The revision of the EU Excise Directive presents an opportunity to establish a coherent framework that reflects the continuum of risk across nicotine products.
GINN supports a system that positions nicotine pouches alongside comparable oral nicotine formats, such as gums and lozenges, rather than within the same tax category as tobacco-derived or combustible products.
Clear definitions and consistent treatment across Member States will ensure that taxation is both transparent and proportionate, avoiding distortions that could stifle innovation or mislead consumers about relative product risk.
Promoting Public Health Through Balanced Taxation
Evidence from multiple independent studies shows that nicotine pouches contain significantly fewer toxic compounds than cigarettes or snus. Their potential to reduce harm and consequently lower rates of COPD, heart disease, and hospital admissions is well established.
However, this harm-reduction benefit depends on affordability and accessibility for adult smokers seeking to switch.
GINN therefore supports a moderate, phased approach to taxation, one that maintains a meaningful price advantage over cigarettes while ensuring compliance and market integrity.
We recommend a progressive excise structure beginning around €45–50 per kilogram by 2030, rising gradually to €75 per kilogram by 2032, paired with regular reviews and consultation with industry, regulators, and public health experts.
Avoiding Unintended Consequences
Excessive taxation of nicotine pouches risks undermining harm reduction objectives. Experience from Canada and Finland shows that when taxes make reduced-risk products unaffordable, consumers often turn to unregulated, illicit supply chains, leading to increased criminal activity, reduced product safety, and lost government revenue.
By contrast, proportionate taxation encourages adult smokers to switch, sustains legitimate business, and ensures excise income supports public services rather than black-market operators.
GINN’s Recommendations
GINN urges EU policymakers to adopt an excise framework that is:
- Evidence-based – Reflecting scientific consensus on the reduced risk of nicotine pouches compared with combustible products.
- Proportionate – Maintaining lower rates for smoke-free alternatives to incentivize switching.
- Predictable and phased – Allowing gradual alignment with health and fiscal goals without destabilizing markets.
- Transparent and harmonized – With clear definitions, consistent tax bases, and coordinated systems for excise movement, traceability, and reporting.
- Supportive of innovation – Protecting smaller operators and encouraging responsible product development that meets the highest safety standards.
A Smarter Path Forward
The revision of the EU Excise Directive is a pivotal moment for harm reduction and regulatory coherence across Europe.
By treating nicotine pouches as a distinct product category, establishing a fair and transparent tax model, and prioritizing public health over prohibition, the EU can set a global example of how science, fiscal policy, and health objectives can align to reduce smoking-related harm.
GINN will continue to engage with policymakers, public health institutions, and industry partners to support a balanced, evidence-driven approach that ensures lower-risk products remain accessible, affordable, and responsibly regulated.
