Reports have emerged that the European Commission may be preparing a significant tax increase on safer nicotine alternatives—including nicotine pouches and vaping products—by mid-2025. Though not yet confirmed, the leaked plans have stirred concern across industry and public health stakeholders, particularly as EU Tax Commissioner Wopke Hoekstra has recently been touring member state capitals seeking support for revisions to the Tobacco Excise Directive (TED).
While exact details remain under wraps, the implication is clear: nicotine pouches and related products could soon face steep new excise duties.
A Harm Reduction Paradox
This move comes at a critical time. Countries like Sweden, which has the EU’s lowest smoking rate, have shown that harm reduction works. By supporting access to low-risk, smoke-free alternatives like snus and nicotine pouches, Sweden has achieved dramatic public health outcomes. Such models underscore the importance of policy frameworks that incentivize—rather than penalize—safer choices.
Yet, if the leaked tax proposal is accurate, the EU risks undermining these gains. Excessive taxation on non-combustible products may discourage smokers from switching to safer alternatives and push current pouch users toward unregulated or illicit sources.
Unintended Consequences: Illicit Trade and Inequity
History has shown that overly aggressive taxation doesn’t eliminate demand—it shifts it underground. Higher prices on safer products could give rise to a parallel illicit market, where product safety and age restrictions are absent. This not only weakens consumer protection but also diminishes public trust in regulatory institutions.
Moreover, price-sensitive groups—particularly in Central and Eastern Europe—may be disproportionately impacted by affordability gaps, thereby exacerbating existing health inequalities.
A Smarter Path Forward
At the Global Institute for Novel Nicotine (GINN), we advocate for risk-proportionate regulation that puts public health and consumer safety first. Safer nicotine products are not without risks—but their harm profile is significantly lower than cigarettes. Tax policy should reflect that.
We urge EU institutions and member states to:
- Avoid one-size-fits-all excise frameworks that fail to distinguish between combustible and non-combustible products.
- Consult openly with stakeholders across public health, science, and industry.
- Maintain access to regulated, legal nicotine alternatives that can reduce smoking rates across Europe.
Let’s Not Tax Away the Opportunity to Save Lives
The European Union has long been a global leader in public health innovation. But taxing safer products like cigarettes sends the wrong message—both to consumers and to regulators worldwide. If the TED reform proceeds, it must be built on evidence, not fear.
🔗 To join the conversation on responsible nicotine regulation, visit www.ginn.global
