Portugal has taken a decisive step toward formalising the regulation of nicotine pouches by creating a new excise tax category for these tobacco-free, smokeless products. Beginning in 2026, nicotine pouches will be subject to a tax rate of €0.065 per gram of net weight, effectively bringing them under the country’s broader tobacco and nicotine tax framework.
This move positions Portugal among a growing number of EU member states recognising that nicotine pouches require both fiscal clarity and proportionate regulation to protect consumers while supporting harm-reduction goals.
A Turning Point for Public Policy and Revenue
The new tax closes a longstanding regulatory gap by giving nicotine pouches an explicit fiscal status within Portugal’s excise system.
By doing so, the measure:
- Establishes regulatory parity with other nicotine-containing products such as heated tobacco and e-cigarettes.
- Generates new government revenue to support health programmes.
- Signals the country’s intent to integrate safer nicotine alternatives into the formal policy landscape rather than treat them as unregulated products.
This alignment reflects a pragmatic shift seen elsewhere in Europe — acknowledging that non-combustible nicotine products can play a legitimate role in public health strategies when properly regulated.
Balancing Harm Reduction and Youth Protection
Portugal’s approach now gives policymakers the tools to strike a critical balance between supporting adult smokers who wish to quit and protecting nicotine-naive individuals. To achieve this, GINN recommends five complementary policy safeguards:
- Position price to encourage switching, not initiation.
Tax levels should ensure nicotine pouches remain cheaper than cigarettes for adult smokers seeking a lower-risk option, yet not so inexpensive that they become attractive to first-time or youth users. - Cap nicotine strength and require clear labelling.
Setting upper limits on nicotine per pouch and mandating standardised labelling ensures predictable dosing and reduces the risk of accidental overuse among new users. - Restrict flavours, packaging, and promotions.
Limiting sweet or youth-appealing flavours, requiring plain or health-focused packaging, and applying strict point-of-sale controls can reduce youth appeal while maintaining adult interest. - Enforce robust age-verification and market surveillance.
Retailers should implement digital age-verification systems and undergo regular audits. These measures, already common in Nordic and U.S. markets, help prevent underage access and track market trends in real time. - Earmark part of tax revenue for cessation and prevention.
Allocating a portion of new excise income to quit-smoking programmes, youth prevention campaigns, and independent monitoring will ensure that fiscal policy directly supports public-health goals.
Policy Design Recommendations for Legislators
To ensure this tax measure supports harm-reduction objectives rather than undermines them, GINN encourages Portuguese lawmakers to adopt a flexible, evidence-based framework:
- Graduated excise model: Combine a weight-based base rate with an additional surcharge for high-nicotine products. This maintains affordability for moderate-strength pouches while discouraging excessively potent formulations.
- Mandatory manufacturer reporting: Require companies to disclose nicotine content, ingredients, and sales volumes, backed by third-party lab testing for accuracy.
- Periodic policy review: Include a two-year statutory evaluation to assess switching rates, youth uptake, and illicit trade. Adjust tax or regulatory parameters in response to evidence, not political pressure.
Such adaptive regulation ensures that Portugal’s tax framework remains aligned with both public-health goals and market realities.
Conclusion: Fiscal Policy Meets Harm Reduction
Portugal’s new nicotine pouch tax represents a significant milestone in European harm-reduction policy. By recognising these products within the formal excise system, the government has gained a powerful lever to steer smokers away from combustible tobacco while protecting youth and ensuring transparency in a rapidly expanding market.
If implemented with proportionate taxation, nicotine caps, strong labelling, and dedicated prevention funding, Portugal can become a model for how fiscal measures can support rather than stifle harm reduction.
GINN welcomes this development and encourages continued dialogue between policymakers, scientists, and responsible manufacturers to ensure that taxation serves the shared goal of reducing smoking-related harm across Europe.
