Tobacco tax reform is not on the EU’s agenda for 2025, however, the Polish Presidency Council (which sits atop the Commission along with Denmark and Cyprus until June) is looking to move forward with discussions for taxing alternative tobacco products, according to a non-paper seen by Euractiv.
Unlike cigarettes, alternative products do not fall under the EU-wide excise framework. The non-paper notes that the tobacco market has undergone “dramatic changes” in recent years, with novel products like e-cigarettes, heated tobacco, and nicotine pouches rapidly gaining popularity.
EU diplomats are scheduled to discuss the matter today as part of the working party on Indirect Taxation. Euractiv reported that sources close to the discussion confirmed that some industry players are mounting pressure on the Commission to tax new products to avoid an outright ban as their regulatory limbo drags on.
Each country is free to make its own rules in terms of handling tobacco products. For example, France recently banned disposable e-cigarettes and this week reportedly will do the same for nicotine pouches, joining countries such as Germany, Austria, Belgium, and Luxembourg that have already done so. Other countries are looking to take it even further.
“We don’t just need a smoke-free generation, we need a nicotine-free generation,” Estonian Health Minister Riina Sikkut said. “Many health ministers support this idea. After the pharmaceutical package, tobacco legislation should be next.”
