September 2026: EU Stalled on Nicotine Pouch Tax Debate as Clashing Blocs Block Compromise
The European Union’s efforts to overhaul its Tobacco Taxation Directive remain mired in a bitter political stalemate, as member states clash over how to tax emerging non-combustible products like oral nicotine pouches. The European Commission’s proposed revision aims to introduce mandatory EU-wide minimum excise duties on novel nicotine products alongside higher minimum taxes on traditional cigarettes, seeking to reduce health risks and curb youth adoption. However, the proposal has exposed a deep ideological divide across the bloc, leaving consensus out of reach.
On one side of the dispute is a hard-line public health bloc, spearheaded by high-tax jurisdictions like Ireland, France, and the Netherlands. Operating with a strict tobacco control agenda under the Irish EU Council Presidency, Ireland and its allies strongly favor applying high minimum excise rates across all nicotine delivery systems. This camp views aggressive taxation as the single most effective tool to deter youth uptake, maintain public health standards, and prevent regulatory disparities within the single market.
Standing in direct opposition is a harm-reduction coalition led by Sweden, where nicotine pouches and snus enjoy widespread adult use. Swedish officials and their supporters contend that non-combustible products carry significantly lower health risks than traditional cigarettes and should be taxed far less heavily to incentivize adult smokers to switch. Pointing to Sweden’s record-low smoking rates, the Nordic bloc views heavy EU-mandated tax increases on pouches as a threat to effective harm-reduction strategies and a direct intrusion into domestic market policy.
Because EU tax decisions require unanimous approval from all 27 member states, Sweden’s firm refusal to accept heavy excise duties on pouches effectively blocks the directive from advancing. With the hard-line Irish Presidency pushing an uncompromising public health mandate and Sweden standing resolute on harm reduction, the fundamental rift between member states ensures that a near-term compromise on European nicotine pouch taxation remains virtually impossible.
August 2026: EU Watchdog Probes European Commission’s Trade Department Over Undisclosed Tobacco Lobbying
The European Ombudsman has opened a formal inquiry into how the European Commission’s Directorate-General for Trade and Economic Security (DG TRADE) manages its communications and contacts with representatives from the tobacco industry. The investigation follows a complaint lodged by a non-governmental organization alleging that DG TRADE has engaged in regular, unnecessary, and non-transparent interactions with tobacco representatives. According to the complaint, these dealings potentially breach the World Health Organization’s Framework Convention on Tobacco Control, to which the European Union is a legal party. The complainant warns that unmonitored contacts between trade officials and industry lobbyists could compromise global public health policy and weaken tobacco regulations in third countries, particularly low- and middle-income nations. As part of the inquiry (Case 72528), the Ombudsman has requested access to internal Commission documents, meeting records, and communications concerning tobacco and nicotine discussions with third countries.
The European Ombudsman is an independent, impartial watchdog established under EU treaties to hold European Union institutions, bodies, and agencies accountable. The office investigates instances of maladministration, such as administrative irregularities, unfairness, discrimination, abuse of power, failure to reply, or a lack of transparency. While the Ombudsman cannot issue legally binding orders, its findings carry substantial moral and political weight, routinely leading to official inquiries, inspections of confidential administrative documents, and formal recommendations to improve EU governance standards.
This inquiry carries significant regulatory, institutional, and geopolitical consequences for the European Union. First, it could mandate standardized transparency across all EU departments. While public health (DG SANTE) and taxation (DG TAXUD) departments proactively publish all meetings with tobacco representatives regardless of staff seniority, DG TRADE has historically operated under broader lobbying rules. A finding of maladministration could force the Commission to enforce a uniform policy of proactive meeting disclosures across every Directorate-General.
Second, it reinforces the alignment of EU trade policy with public health priorities. As a global trading bloc, the European Union’s external trade negotiations heavily influence international regulatory standards. If the inquiry reveals that EU trade officials allowed tobacco industry interests to influence trade discussions, it could force the EU to establish strict rules ensuring its commercial trade agenda never undermines public health safeguards in bilateral agreements or partner nations.
Third, it reinforces compliance with international treaties. Article 5.3 of the WHO Framework Convention on Tobacco Control explicitly requires signatories to protect public health policies from the commercial interests of the tobacco industry. The investigation puts pressure on the EU executive to demonstrate strict, verifiable compliance with its international treaty obligations.
Finally, it places heightened scrutiny on shadow lobbying. By inspecting internal emails, briefing notes, and third-country dialogue records, the Ombudsman is signaling that transparency extends beyond formal, registered meetings to cover informal correspondence and third-party industry coalitions.
July 2026: Italy and Greece Challenge Ireland’s Strict Draft Nicotine Law Amid EU Tobacco Directive Revision
Italy and Greece have formally submitted detailed opinions opposing an ambitious Irish draft law aimed at imposing strict regulations on e-cigarettes and nicotine pouches. The objections were filed under the European Union’s Technical Regulations Information System (TRIS) notification procedure (Directive (EU) 2015/1535), effectively extending the standstill period on the Irish bill until October 7, 2026.
Notified in April 2026, Ireland’s draft bill proposes extensive amendments to its public health legislation regarding tobacco products and nicotine-containing inhalants. Aimed at reducing product appeal to youth, Dublin’s proposed measures include a ban on non-tobacco flavorings, restrictions on flavor-evoking names, plain packaging for e-cigarettes and nicotine pouches, bans on retail and online displays, and specific color requirements for nicotine-containing liquids.
Both Italy and Greece have raised legal and economic objections, citing potential disruptions to the single market and the free movement of goods under Articles 34 and 36 of the Treaty on the Functioning of the European Union (TFEU).
Italy’s opinion was prepared by its Ministry of Enterprise and Made in Italy alongside its Ministry of Health. Rome contends that unilateral national measures risk interfering with the ongoing EU harmonization process, invoking the principle of sincere cooperation under Article 4(3) of the Treaty on European Union (TEU). While acknowledging public health as a legitimate objective, Italy stresses that restrictions like flavor bans, plain packaging, and display bans require individual scientific justification and proof that less restrictive options—such as enhanced age verification and market surveillance—are insufficient. Rome also expressed concerns that plain packaging could complicate product authentication, potentially fueling illicit trade.
Greece’s objection, submitted by the General Secretariat for Industry, similarly highlights internal market fragmentation. Athens noted that forcing producers to alter product composition, packaging, and branding specifically for Ireland creates substantial compliance costs and risks driving cross-border operators out of the market. Pointing to its own significant manufacturing and export sector for novel nicotine products, Greece requested that the European Commission maintain the regulatory status quo while EU-level rules are updated.
Notably, the challenges from both Mediterranean nations were led by trade and industrial ministries, reflecting the substantial economic presence of the tobacco and nicotine industry in both countries, where major international manufacturers maintain heavy manufacturing and agricultural investments.
This regulatory showdown foreshadows a deeply polarized debate for the ongoing revision of the EU Tobacco Products Directive (TPD). Ireland’s proactive stance demonstrates a push among certain Member States to aggressively regulate novel nicotine products such as e-cigarettes and pouches. However, the formal resistance from Italy and Greece underscores a growing rift between Member States prioritizing stringent public health policies and those defending internal market cohesion and industrial interests.
As discussions surrounding the TPD revision gain momentum, particularly under the political context of Ireland’s EU Council Presidency, Dublin’s ambition to set a precedent for strict, standardized regulations across the bloc faces tough resistance. Southern European nations with established nicotine manufacturing sectors are likely to use single-market rules and proportionality arguments to counter unilateral national restrictions, seeking instead to moderate EU-wide proposals. Consequently, the TPD revision is already a fiercely contested battleground between public health advocates pushing for comprehensive flavor and packaging bans and economic-focused coalitions striving to protect market integration and industry viability.
July 2026: EU Tobacco Directives Plunge into Gridlock Following Resounding European Parliament Rejection
On June 17, 2026, the European Parliament overwhelmingly rejected a key report regarding the revision of the EU Tobacco Taxation Directive, voting it down 439 to 181. This decisive vote in Strasbourg highlighted deep divisions among lawmakers over raising minimum excise duties and deciding how to tax emerging nicotine products. The legislative collapse has effectively stalled the revision of both the Tobacco Excise Directive (TED) and the companion Tobacco Products Directive (TPD), exposing a profound ideological rift across the bloc.
A Tale of Two Visions: Ireland vs. Sweden
Following the parliamentary breakdown, the monumental task of reconciling these stark differences now falls to Ireland, which has taken over the rotating Presidency of the Council of the EU. However, Dublin is uniquely positioned as a polarized actor rather than a neutral mediator:
The Irish Stance: Ireland has traditionally championed one of the strictest anti-tobacco positions in the Union. Dublin strongly favors aggressive regulatory clampdowns, high uniform taxation, and holds severe reservations about new nicotine products, aligning closely with the European Commission’s cautious approach.
The Swedish Opposition: Leading the opposing faction is Sweden, backed by a coalition of nations championing a harm-reduction model. Emboldened by its low smoking rates – achieved largely through the widespread use of traditional snus and modern nicotine pouches – Sweden vigorously opposes heavy taxation or bans on safer alternatives to combustible cigarettes.
Given these irreconcilable worldviews, a breakthrough under the Irish presidency seems highly unlikely.
The 2027 Outlook: Anticipating the Next Presidencies
With the files expected to face prolonged delays, Brussels insiders predict that a true reconciliation will be pushed back until 2027, when the political dynamics of the Council presidency shift:
H1 2027 – Lithuania (The Neutral Broker): When Lithuania takes over the presidency in the first half of 2027, the files may finally see pragmatic movement. Lithuania is widely viewed as a neutral player on tobacco taxation, lacking the intense, ideologically driven approach of Ireland, which makes it a more viable candidate to draft a consensus text.
H2 2027 – Greece (Aligned with Sweden’s Camp): If the deadlock drags into the latter half of 2027, the momentum will likely swing toward the harm-reduction faction. Greece has a historically significant domestic tobacco infrastructure and has actively embraced alternative nicotine and heated tobacco markets. Athens is firmly in Sweden’s camp, advocating for a framework that differentiates between combustible tobacco and low-risk alternatives.
Until member states can bridge the gap between absolute prohibition and harm reduction, the EU’s landmark tobacco and tax reforms will remain in a state of legislative limbo.
June 2026: European Parliament Rejects Proposed Updates to EU Tobacco Taxation Rules
On June 17, 2026, the European Parliament overwhelmingly rejected a key report regarding the revision of the EU Tobacco Taxation Directive, voting it down 439 to 181. This decisive vote in Strasbourg highlighted deep divisions among lawmakers over raising minimum excise duties and deciding how to tax emerging nicotine products.
The rejected report aimed to update the EU legacy tobacco taxation framework, which was established in 2011 and last revised in 2014. Currently, the framework completely omits newer categories like e-cigarettes, heated tobacco products, and nicotine pouches. Because of this gap, member states have adopted widely different tax approaches, creating a highly fragmented market across the European Union. While the European Commission has pushed for stricter minimum duty levels to track inflation and curb nicotine consumption, the Parliament Committee on Economic and Monetary Affairs had advocated for smaller and fewer excise duty increases. Ultimately, the stark ideological divide between health objectives and economic concerns led to the proposal being soundly defeated on the plenary floor.
This rejection carries significant implications for the European market. Without a unified EU framework, member states will continue to patch together their own disparate tax rates for vapes and nicotine pouches. This regulatory patchwork leaves the door wide open for cross-border tax shopping and illicit trade as consumers look for cheaper alternatives in neighboring countries. Furthermore, the European Commission broader strategy to use aggressive taxation as a tool to drive down smoking rates and help member states claw back inflation-adjusted revenues has hit a massive roadblock.
Regarding the next steps, under the EU legislative process for tax matters, the European Parliament only holds a consultative role, meaning its vote is not a final veto. The Council of the European Union, which represents the governments of the member states, holds the actual power to make the final decision on adoption. However, an overwhelming rejection like this carries heavy political weight. The European Commission will likely have to go back to the drawing board to draft a compromise that bridges the gap between lawmakers prioritizing public health and those worried about economic fallout, cross-border smuggling, and individual member state autonomy. Finally, while the Council can theoretically push forward with its own framework, tax revisions require unanimous agreement among all member states, meaning this parliamentary gridlock signals that reaching a true consensus in the Council will be an incredibly uphill battle.
June 2026: Sweden Vetoes EU Tobacco Tax Reform, Stalling Overhaul of Cigarette and Nicotine Product Taxes
The planned overhaul of the European Union’s tobacco taxation framework has been delayed after Sweden refused to support the proposal, preventing EU member states from reaching the unanimous agreement required for tax legislation. As a result, the issue was removed from the agenda of the 12 June meeting of EU finance ministers (ECOFIN) and will now be handed over to the incoming Irish Presidency for further negotiations.
The proposed revision of the EU Tobacco Taxation Directive (TTD) would substantially increase minimum excise duties on cigarettes and introduce EU-wide minimum taxes on newer nicotine products, including heated tobacco, e-cigarettes, and nicotine pouches. Meanwhile, the European Parliament’s Economic and Monetary Affairs Committee (ECON) has already endorsed a softer version of the proposal, featuring lower tax increases and longer transition periods than those originally proposed by the European Commission.
Sweden’s opposition centers primarily on nicotine pouches and snus. Swedish officials argue that these lower-risk alternatives have played a major role in helping the country achieve the lowest smoking rate in the EU and that imposing large tax increases on such products would undermine Sweden’s harm-reduction strategy. The Swedish government has described the proposed tax treatment of nicotine pouches as unacceptable and has resisted efforts to harmonize taxes at the EU level.
In EU tax matters, including excise taxes on tobacco products, decisions generally require unanimous approval from all member states in the Council of the European Union. This means every member state effectively has veto power. As a result, Sweden’s refusal to agree does not merely express opposition – it blocks the proposal from moving forward. Unless Sweden changes its position or a compromise is reached that satisfies all member states, the revised Tobacco Taxation Directive cannot be adopted. The current EU tobacco tax framework therefore remains in place for now.
The delay is significant because the proposal was intended to modernize EU tobacco taxation for the first time in more than a decade, raise minimum tax levels across the bloc, and bring emerging nicotine products into a harmonized excise framework. Whether the reform advances now depends on the Irish Presidency’s ability to broker a compromise among member states.
June 2026: European Parliament Committee Backs Lower Tobacco Tax Increases Than EU Commission Proposal
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has adopted its recommendations on the revision of the EU Tobacco Excise Directive (TED), proposing significantly lower tax increases and longer transition periods than those set out by the European Commission.
The reform aims to modernize a framework largely unchanged since 2011, addressing the rise of new nicotine products such as e-cigarettes, heated tobacco products, and nicotine pouches, while also accounting for inflation and reducing tax disparities across Member States. The Commission’s proposal seeks to strengthen public health policy and support the EU’s objective of achieving a “Tobacco-Free Generation” by 2040.
The committee adopted two reports covering both the structure and rates of excise duties on tobacco and nicotine products, as well as the general arrangements governing excise taxation. While supporting higher taxation on cigarettes and new nicotine products, MEPs call for a more gradual and less aggressive increase than proposed by the Commission.
| Product Category | Current EU Minimum | Commission Proposal | ECON Committee Recommendation |
|---|---|---|---|
| Cigarettes | 60% of retail price and €90/1,000 cigarettes | 63% and €215/1,000 cigarettes (2028) | 60% and €200/1,000 cigarettes (2028) |
| Cigars & Cigarillos | 5% or €12/1,000 or kg | 40% or €143/1,000 or kg by 2032 | 15% or €54/1,000 or kg by 2034 |
| E-cigarette liquids | No EU minimum | 20% or €0.12/ml (≤15mg nicotine); 40% or €0.36/ml (>15mg nicotine) by 2032 | 30% or €0.30/ml by 2033 |
| Fine-cut tobacco for rolling | 50% or €60/kg | 62% or €215/kg by 2032 | 55% or €143/kg by 2034 |
| Waterpipe tobacco | No EU minimum | 50% or €107/kg by 2032 | 40% or €80/kg by 2034 |
| Other smoking tobacco | 20% or €22/kg | 50% or €143/kg by 2032 | 35% or €110/kg by 2034 |
| Heated tobacco products | No EU minimum | 55% or €108/1,000 sticks or €155/kg by 2032 | 35% or €80/1,000 sticks or €200/kg by 2034 |
| Other manufactured tobacco | No EU minimum | 50% or €143/kg by 2032 | 35% or €110/kg by 2034 |
| Nicotine pouches | No EU minimum | 50% or €143/kg by 2032 | 28% or €50/kg by 2033 |
| Other nicotine products | No EU minimum | 50% minimum tax by 2032 | 35% or €35/kg or €0.25/ml by 2033 |
A key element of the revised directive is the introduction of an automatic indexation mechanism to adjust minimum excise duties in line with inflation. The committee proposes several changes to the Commission’s approach, including the exclusion of energy and unprocessed food prices from the inflation calculation, a delayed start until 2036 (compared with 2028 in the Commission proposal), and a cap limiting any single adjustment of EU minimum tax rates to 9%.
Following the vote, the committee said it aimed to establish a modern and coherent framework while ensuring the rules remain “realistic, proportionate and enforceable.” It emphasized the importance of differentiating products based on their characteristics, usage patterns, and risk profiles, alongside more gradual implementation timelines to improve predictability for Member States. The objective, it stressed, is not to weaken the Commission’s public health goals, but to ensure the directive is workable in practice while protecting public health, safeguarding tax revenues, reducing incentives for illicit trade, and ensuring proportionality.
The European Parliament is expected to vote on the committee’s recommendations in plenary on 17 June 2026. Following Parliament’s position, negotiations will continue in the Council of the European Union, where unanimous approval by Member States is required for adoption. Once formally approved and published in the Official Journal of the European Union, the directive will enter into force 20 days later. Member States would then have until 31 December 2027 to transpose the majority of provisions into national law, with product-specific transition periods extending into the 2030s.
June 2026: EU Tobacco Tax Reform Moves to Ireland as Political Battle Intensifies
The responsibility for advancing the EU’s proposed revision of the Tobacco Taxation Directive (TTD) is set to pass to Ireland when it assumes the rotating presidency of the Council of the EU in July 2026. The file remains highly contentious after months of negotiations under the Cypriot presidency, with member states divided over the scale of tax increases and how new nicotine products should be taxed.
The European Commission’s proposal would significantly raise minimum EU excise taxes on cigarettes and extend harmonized taxation to products such as heated tobacco, e-cigarettes, nicotine pouches, and raw tobacco. The stated goals are to reduce tobacco consumption, modernize a framework that has not been substantially updated since 2011, and combat illicit trade. However, negotiations have exposed deep disagreements among member states. Several governments have pushed for lower minimum tax requirements, longer transition periods, and greater national flexibility, arguing that excessive tax increases could fuel illicit trade and create economic disruption. Public health groups, meanwhile, have warned that weakening the proposal would undermine the EU’s tobacco-control objectives.
Ireland is expected to inherit a politically sensitive dossier requiring unanimous approval by EU governments. While Ireland has historically supported stronger tobacco taxation measures, it will need to balance competing national interests and attempt to build consensus on one of the most controversial health and tax files currently before the Council.
May 2026: European Commission Opens Consultation on Major Revision of EU Tobacco Rules
The European Commission has launched a formal “Call for Evidence” as part of its planned revision of the EU’s tobacco control framework, covering both the Tobacco Products Directive (Directive 2014/40/EU) and the Tobacco Advertising Directive (Directive 2003/33/EC). The feedback period runs from May 18 to June 15, 2026, with a broader public consultation scheduled for the second quarter of 2026 and Commission adoption targeted for the fourth quarter of 2026.
According to the Commission’s call for evidence, the revision aims to modernise EU tobacco legislation in response to evolving nicotine markets, rising use of novel products among young people, and increasing digital marketing activity. The initiative follows the Commission’s 2026 evaluation of the EU tobacco framework, which found that while existing rules contributed to declining smoking rates and tobacco-related deaths, significant regulatory gaps remain for newer products such as nicotine pouches, heated herbal products and electronic non-nicotine delivery systems.
The Commission also highlighted growing fragmentation across member states, with differing national rules emerging on flavors in e-cigarettes, disposable vapes, plain packaging and nicotine pouches. The revision is expected to consider additional restrictions on flavors, tougher packaging and labelling requirements including plain packaging, expanded regulation of novel products, and stronger controls on digital advertising and influencer promotion.
The legislative revision forms part of the EU’s broader public health agenda under Europe’s Beating Cancer Plan, which targets the creation of a “tobacco-free generation” by 2040.
April 2026: Cyprus Pushes Scaled-Back Compromise to Break EU Tobacco Tax Deadlock
A long-running deadlock over revising the EU’s Tobacco Excise Directive (TED) may be edging toward resolution as Cyprus, holding the Council presidency, advances a more pragmatic and calibrated compromise aimed at bridging divisions among member states.
The original proposal from the European Commission sought to significantly raise minimum excise duties and extend harmonised taxation to newer nicotine products such as e-cigarettes, heated tobacco, and nicotine pouches. While aligned with public health objectives, the plan faced resistance from several governments concerned about affordability, inflationary pressure, and the potential expansion of illicit trade.
Cyprus’s revised approach retains the overall architecture of the reform but moderates its intensity across all key dimensions. On cigarettes, the proposed minimum total excise burden is reduced to 60% of the retail price, effectively maintaining the current floor rather than increasing it. For next-generation products, tax levels are also scaled back. Heated tobacco would be taxed at roughly €2 per pack of 20 sticks, while e-liquids would face lower ad valorem rates of around 20% or shift toward a simplified volumetric system of approximately €0.30 per millilitre. Nicotine pouches, meanwhile, would be taxed at about €107 per kilogram, representing a notable reduction from earlier proposals.
Beyond rate adjustments, the compromise introduces longer transition periods, with implementation potentially extending up to four years, allowing for a more gradual adjustment across markets. It also limits automatic inflation-linked increases by introducing caps, in some drafts around 6% annually, thereby restoring a degree of political control over future tax changes. In parallel, the proposal simplifies tax structures, particularly for vaping products, by moving away from complex tiered systems toward more straightforward models that are easier to administer.
| Policy Area | Commission Proposal (2025) | Cyprus Compromise (2026) | What Changed / Why It Matters |
|---|---|---|---|
| Cigarette taxation | Increase minimum total excise to ~63% of retail price | Reduced to 60% | Removes upward pressure; protects lower-tax countries |
| Heated tobacco | Higher excise closer to cigarettes | ~€2 per pack | Keeps category taxed, but preserves price gap vs cigarettes |
| E-liquids (vapes) | High ad valorem (~40%) + tiered structure | ~20% or €0.30/ml flat | Cuts tax burden and simplifies system |
| Nicotine pouches | ~€143/kg | ~€107/kg | Significant downward revision to support emerging category |
| Tax structure | Complex, risk-based tiers (esp. vaping) | Simplified volumetric models | Easier administration, less regulatory friction |
| Indexation (inflation) | Automatic, rules-based increases | Capped / limited (~6%) | Restores political control; avoids steep annual hikes |
| Implementation timeline | Faster alignment | Up to 4 years transition | Reduces short-term economic shock |
| Harmonisation approach | Strong upward convergence | Flexible, gradual convergence | Reflects political realities in Council |
| Scope (new products) | Full inclusion | Maintained, but clarified | Reform preserved, legal clarity improved |
| Governance | More Commission-driven adjustments | Greater member state discretion | Pushback against centralisation |
Importantly, Cyprus does not roll back the core scope of the directive. New product categories remain within the framework, although definitions are refined to reduce ambiguity and ensure more consistent application across member states. At the same time, the compromise reflects a broader effort to reassert national flexibility, giving governments more discretion and pushing back against more centralised, rules-based mechanisms initially envisaged.
Taken together, the Cyprus proposal represents a shift from rapid, rules-driven harmonisation toward gradual convergence shaped by political and economic realities. Early reactions from member states suggest cautious openness, although unanimous agreement, required for EU tax policy, remains uncertain. Cyprus is aiming to secure a deal by mid-2026, but if consensus proves elusive, the revision may carry over to the next Council presidency, potentially reopening debates over the balance between public health ambition and economic feasibility.
April 2026: European Commission Review Finds EU Tobacco Control Effective but Flags Regulatory Gaps
The European Commission has published its evaluation of the EU tobacco control framework, assessing the effectiveness, efficiency, and relevance of the Tobacco Products Directive and the Tobacco Advertising Directive in protecting public health and ensuring the smooth functioning of the internal market.
The evaluation concludes that the EU’s tobacco control framework has been broadly effective in reducing smoking prevalence and limiting tobacco-related harm. Since 2012, smoking rates in the EU have fallen from 28% to 24% of the population, with an even sharper decline among young people. The directives have contributed to harmonised product standards, restrictions on advertising, and improved consumer awareness across member states. The Commission finds that both directives remain relevant and continue to support public health objectives while facilitating the functioning of the single market by aligning rules across countries. Measures such as health warnings, ingredient regulation, and advertising restrictions have played a central role in reducing tobacco consumption and preventing market fragmentation.
However, the report identifies several areas where the framework is under pressure. In particular, the rapid emergence of novel tobacco and nicotine products – including e-cigarettes, heated tobacco products, and nicotine pouches – has created regulatory gaps and challenges for existing legislation. The Commission has also highlighted growing scientific evidence linking newer nicotine products to health risks, including cardiovascular effects and risks during pregnancy. According to scientific assessments cited by the Commission, e-cigarette use can affect the cardiovascular system, increase blood pressure, impair endothelial function, and expose users to toxic substances and metals. Evidence also suggests potential respiratory disease risks and possible impacts on pregnancy outcomes. These findings reinforce the Commission’s position that emerging nicotine products are not risk-free and require closer regulatory scrutiny.
A key concern highlighted in the evaluation is digital promotion, which remains a major challenge due to its often covert nature. The Commission notes that online marketing of tobacco and nicotine products – especially newer categories – can circumvent existing advertising restrictions, making enforcement more difficult and potentially undermining public health objectives. Enforcement more broadly remains uneven across member states, and differences in implementation continue to affect the consistency of the internal market.
The broader policy debate around the upcoming revision of EU tobacco legislation has revealed growing divisions among EU member states on how to regulate new nicotine products. Broadly, two major blocs are emerging, alongside a group of undecided or more flexible countries.
– Stricter regulation bloc: Countries such as France, Spain, Belgium, Netherlands and Ireland generally support stricter regulation of novel nicotine products, including flavour bans, tighter advertising restrictions, plain packaging extensions, and in some cases restrictions or bans on nicotine pouches. These countries typically prioritise youth protection and precautionary public health policy and often support stronger EU-level harmonisation.
– Harm-reduction / differentiated regulation bloc: Another group of countries – including Sweden, Poland, Greece, Italy, Romania, and Bulgaria – generally supports a more differentiated regulatory approach that recognises risk differences between combustible cigarettes and alternative nicotine products. These countries are typically more cautious about excessive regulation that could discourage smokers from switching to lower-risk alternatives or create regulatory barriers for new product categories.
A third group of member states – including Germany, Austria, Denmark, Finland, Portugal, Hungary, and Slovakia – have not consistently aligned with either bloc and are often considered swing countries in EU negotiations. Their positions may vary depending on the specific issue, such as flavours, taxation, advertising rules, or nicotine pouch regulation, and they are likely to play a decisive role in negotiations over the upcoming revision of EU tobacco legislation.
Overall, the European Commission concludes that while the EU tobacco control framework has delivered measurable public health benefits and continues to serve its core purpose, targeted updates and stronger enforcement – particularly in the areas of digital promotion and emerging products – may be needed to ensure it remains effective in a rapidly evolving market. The upcoming revision of EU tobacco legislation is therefore likely to become a major policy debate, not only about public health but also about harm reduction, innovation, and the future structure of the EU nicotine market, with the final outcome likely to depend heavily on the position taken by the undecided member states.
Link: European Commission – Evaluation of the EU Tobacco Control Framework
March 2026: EU Tobacco Policy Battle Intensifies as Member States Split Into Rival Blocs
A major political battle is emerging within the European Union over the future of tobacco and nicotine regulation, as member states increasingly split into two opposing blocs ahead of upcoming revisions to EU tobacco legislation, including taxation, product regulation, and rules governing next-generation nicotine products.
On one side, a group of countries led by France and the Netherlands is pushing for stricter regulation across all tobacco and nicotine products. This bloc supports higher excise taxes, tighter marketing restrictions, flavor bans, and stricter rules for emerging products such as vaping devices, heated tobacco, and nicotine pouches. These countries are generally aligned with a strong public-health approach and support ambitious smoke-free targets, viewing newer nicotine products with caution and often favoring regulation similar to traditional cigarettes.
On the other side, a second bloc led by Italy and Greece is advocating for a more cautious and evidence-based regulatory approach, particularly regarding reduced-risk products. These countries are more concerned about unintended consequences such as the growth of illicit trade, the economic impact on retailers and domestic tobacco industries, and the potential role of alternative nicotine products in reducing cigarette consumption. This group generally supports differentiated regulation between combustible cigarettes and reduced-risk products rather than treating all nicotine products the same.
The disagreement between these two blocs reflects a broader ideological divide within the European Union over harm reduction versus strict tobacco control policy. Some governments see vaping, heated tobacco, and nicotine pouches primarily as public-health risks that should be tightly restricted, while others see them as potential tools to accelerate the decline of cigarette smoking.
Notably, Germany – the EU’s largest economy and often the decisive player in EU policy negotiations – has so far remained largely silent in this debate. Germany’s position is expected to be crucial, as it could ultimately determine the balance of power between the two blocs. Without a clear German position, negotiations are likely to remain uncertain and politically contentious.
The outcome of this emerging policy battle will be highly significant for the future of nicotine regulation in Europe, as upcoming EU decisions could reshape taxation, product regulation, and market dynamics for cigarettes, vaping products, heated tobacco, and nicotine pouches across the entire European Union for years to come.
February 2026: WHO Reports Persistent Gaps in Tobacco Control and Rising Youth Nicotine Use in Europe
World Health Organization (WHO) has published new factsheets on tobacco, indicating that the European Region – which covers 53 countries across Europe and Central Asia – is projected to retain the highest tobacco use prevalence globally by 2030. Drawing on the latest data from the World Health Organization’s 10th report on the global tobacco epidemic, the factsheets assess how countries are implementing key tobacco control policies. While the Region has established monitoring systems and packaging requirements in many markets, the findings highlight uneven implementation and policy gaps, particularly as nicotine products continue to evolve1.
The European Region is the only WHO region not expected to meet the global target of a 30% reduction in tobacco use among women by 2025; it is currently projected to achieve a 12% reduction between 2010 and 2025. More than 40% of the world’s adult female smokers – c.62 million women – live in the Region. Around 4 million adolescents aged 13–15 use tobacco products, with girls in this age group recording the highest tobacco use prevalence globally. The Region also reports the world’s highest adolescent e-cigarette use prevalence, at 14.3% among 13-15-year-olds, with similar rates among boys and girls. Among adults, e-cigarette use is the second highest globally, with an estimated 31.4 million users.
According to the factsheets, only 18 of 53 countries have comprehensive smoke-free laws covering all public spaces. Twelve countries provide national quit lines and cover cessation costs, and 13 have comprehensive bans on tobacco advertising and promotion. In 19 countries, cigarettes are more affordable today than in 2014. Regulation of e-cigarettes and other emerging nicotine products remains fragmented. WHO is calling on Member States to address these gaps, strengthen enforcement, and align policies with obligations under the WHO Framework Convention on Tobacco Control (FCTC), including extending regulatory frameworks to new and emerging products.
Download WHO Global Tobacco Prevalence Report
February 2026: EU Tobacco Tax Reform Faces Revision as Council Presidency Shifts from Denmark to Cyprus
As the European Union’s rotating Council presidency moved from Denmark to Cyprus at the start of 2026, the long-debated revision of the EU’s Tobacco Excise Duty Directive (TED) has undergone material changes, notably in its approach to minimum excise tax rates for cigarettes and other nicotine products. The shift reflects growing divergence among member states on how far to strengthen excise duties as part of wider public-health ambitions under the EU Beating Cancer Plan and the WHO Framework Convention on Tobacco Control (FCTC).
The original proposal, introduced by the European Commission in July 2025, sought a significant overhaul of the 2011 directive, which at the time set a minimum excise duty of just €1.80 per pack of 20 cigarettes and did not cover novel nicotine products such as e-cigarette liquids, heated tobacco or nicotine pouches. The Commission’s draft aimed to align taxation with current market realities and public-health objectives by raising the minimum cigarette tax to approximately €4.30 per pack and introducing for the first time minimum duties on next-generation products. Under this initial framework, excise on heated tobacco and e-cigarette liquids would be established alongside traditional products, targeting consistent price signals across categories to reduce consumption and narrow tax disparities that currently prevail across member states.
During the Danish Presidency in late 2025, Council negotiations reflected pressure from certain public-health advocacy groups and some member states for even more ambitious taxation. Draft documents circulating at the time reportedly contemplated steep increases for novel products – including a dramatic rise in minimum duty on heated tobacco to levels above earlier Commission proposals – and tighter definitions to close perceived loopholes.
However, the Cyprus Presidency’s revised draft – circulated to member states in early 2026 – scales back several of these measures in response to opposition from countries with lower domestic tax regimes and concerns about economic impacts and illicit trade risks. The updated text proposes a slightly lower minimum cigarette tax of around €4.00 per pack than the Commission’s original €4.30 target, with an extended four-year transition period before this rate would take effect across all member states.
For heated tobacco products, the Cyprus draft also lowers the proposed minimum excise rate to about €2.00 per pack of 20 sticks, down from earlier suggestions around €2.16 or significantly higher figures discussed under the Danish draft. Meanwhile, the suggested minimum duty on high-concentration e-cigarette liquids was halved to 20 % of retail price, compared with a 40 % rate advocated in previous iterations.
These adjustments reflect a broader compromise effort within the Council to bridge competing national priorities. Member states such as Ireland, France and the Netherlands – which traditionally maintain high domestic tobacco taxes – argue that strong excise duties are essential to curb consumption and reduce tobacco-related mortality. Conversely, nations with lower current duties, including Cyprus itself, Bulgaria and Croatia, have voiced concerns about disproportionate economic effects on small retailers and the potential stimulation of illicit markets.
Public-health advocates have sharply criticized the scaled-back draft, warning that weaker tax increases and extended implementation timelines will blunt the directive’s impact on smoking prevalence and addiction rates across the bloc. Observers note that further revisions are likely as the Council continues negotiations, with upcoming presidencies – including Ireland in mid-2026 – expected to press for reinvigoration of minimum excise levels and narrower tax disparities.
The evolving debate illustrates the complex intersection of fiscal policy, public health, and economic interests within the EU’s legislative process, underscoring how shifts in Council leadership can materially influence the shape and ambition of major regulatory reforms.
December 2025: Danish EU Presidency Targets Heated Tobacco With Sharp Tax Hike Proposal
The Danish EU Presidency is pushing for a major increase in minimum EU excise duties on heated tobacco products as part of the ongoing revision of the Tobacco Taxation Directive (TTD). Denmark circulated a new draft that significantly increases the tax level for heat-not-burn products compared with the European Commission’s July 2025 proposal. The Danish EU Presidency’s version would lift the minimum excise burden on heated tobacco by 132%, far above the Commission’s earlier framework2. Such a move would substantially reduce the tax advantage of heated tobacco products relative to traditional cigarettes. The Danish amendments also tighten definitions for products like “raw tobacco,” “waterpipe tobacco,” and “electronic cigarettes,” ensuring all their variants fall under the new tax regime, and revises how taxes are applied when measured on a “per‑item” basis. For heated tobacco products, in particular, the concern is that if taxed “per item” without linking the tax base to weight, volume, or nicotine content, this could incentivize product design shifts and leave room for tax‑avoidance or under‑taxation.
The push comes as the EU seeks to modernize its outdated 2010 tobacco tax rules and to bring “novel products” – including heated tobacco, e-cigarettes and nicotine pouches – under a unified minimum tax regime for the first time. The Commission’s draft reform aims to align excise structures with changing consumption patterns, ensure consistent tax treatment across member states, and introduce automatic adjustments for inflation and purchasing-power differences. Denmark’s more aggressive stance signals political momentum among several member states for stricter taxation on next-generation nicotine products, but divisions remain. Some countries argue that heated tobacco and vaping products should be treated as harm-reduction alternatives and warn that steep EU-wide tax floors could stimulate illicit trade, distort national markets and create social and economic disparities.
Despite these concerns, the Danish draft represents a significant step toward an EU-level consensus on taxing novel nicotine categories, after years of stalled negotiations. If adopted, the higher minimum rates would reshape pricing structures across the bloc, erode the competitive gap between heated tobacco and combustible cigarettes, and accelerate the harmonization of tobacco and nicotine taxation. The proposal, which forms part of negotiations expected to continue into 2026, would influence consumer behavior, industry strategies and fiscal revenues, with broader implementation likely later in the decade once final agreement is reached.
November 2025: EU Member States push back against European Commission’s ambitious tobacco tax overhaul
EU member states have expressed significant reservations about the European Commission’s proposed overhaul of the Tobacco Excise Directive, according to a draft status report prepared for finance ministers. The proposal – set to more than double the EU-wide minimum tax on cigarettes and introduce updated rules for alternative products – has triggered concerns across several capitals. Governments argue that the scale of the tax increases is too steep, the transition period too short, and the mechanism for regularly adjusting minimum rates insufficiently clear. These issues form the core of what the draft describes as “serious concerns,” indicating a broad lack of comfort with the current version of the bill.
The report, dated November 25, 2025, notes that the language may still be revised before the EU finance ministers meet on December 12, 2025, where they will decide whether to adopt the text. The debate comes as the EU attempts to modernize its tax system for tobacco and nicotine products, covering both traditional and emerging categories. While the Commission sees higher harmonized taxes as a public-health tool and a way to reduce cross-border price gaps, several countries warn that excessively sharp increases could disrupt markets, reduce predictability, and potentially fuel illicit trade. The final outcome will depend on whether member states can agree on a more gradual structure or extended implementation timelines before the December meeting.
November 2025: EU Commission positions evidence-based approach at core of new tobacco legislation
The European Commission intends to anchor its upcoming tobacco legislation in a comprehensive evidence-based framework to reduce industry pushback and strengthen the legal defensibility of the reforms. The Commission will rely on detailed impact assessments and scientific evaluations covering health effects, market dynamics, and potential unintended consequences before finalizing the proposal. This approach aims to ensure that new rules – expected to address both traditional and emerging nicotine products – are built on transparent, verifiable data rather than political pressure or lobbying influence3.
The move reflects the Commission’s recognition that the tobacco and nicotine landscape has evolved significantly, with new product categories creating regulatory gaps and uneven national approaches. By emphasizing objective evidence, Brussels seeks to reinforce credibility, improve policymaker alignment, and safeguard the legislation against challenges from the tobacco industry. The strategy also signals to stakeholders that future arguments must be grounded in measurable outcomes and economic realities, marking a shift toward a more structured and defensible regulatory process across the EU.
November 2025: Divided EU will abstain from the WHO FCTC vote
The European Union (EU)’s deep divide on tobacco policy derails its role at WHO Tobacco Summit and the bloc decided not to participate in a critical vote at the WHO’s COP11 meeting on reforming the Framework Convention on Tobacco Control (FCTC). COP11, held from November 17–22, 2025 in Geneva, brings together nearly 200 countries to negotiate updates on key issues, including product regulation, emissions transparency, and emerging nicotine alternatives. The goal is to update rules around Articles 9 and 10 of the treaty, which cover tobacco content and emissions – provisions that were postponed at the last COP meeting.
The EU’s abstention comes after months of failed negotiations under the Danish presidency of the Council, marking a rare public breakdown in unified health policy. The divide largely stems from the European Commission’s uncompromising push: it doesn’t just want to curb traditional cigarettes, but also to impose tight regulation – or even bans – on products like vapes, heated tobacco, and nicotine pouches. Brussels did attempt to soften its stance in late October, circulating a revised, more moderate draft that focused less on blanket bans and more on evidence-based regulation. But that compromise failed to win over enough states.
EU countries ended up clustering into two major camps. On one side, the “progressive” group – including France, Germany, Belgium, and Netherlands – is calling for ambitious measures: bans on flavored nicotine products, plain packaging, and even prohibiting filters. On the other side are more “cautious” nations Sweden, Portugal, Romania, and Greece. These countries emphasize illicit tobacco trade, protecting economic interests tied to tobacco farming, and preserving harm-reduction alternatives.
A leaked EU draft from October 7 crystallized that tension. It proposed “strong regulation or potential bans” on vapes, heated tobacco, and nicotine pouches – a move that alarmed harm-reduction advocates and sparked backlash from industry-linked observers. Critics warn that overly harsh restrictions could backfire: smokers might return to combustible cigarettes, or illicit markets could grow, undermining public health goals. The Danish presidency said it had offered a “landing zone” compromise, but government positions proved too entrenched. Internal discord is nothing new: the EU failed to reach a common position at the previous COP (COP10) for similar reasons.
October 2025: EU softens the proposal for a unified EU position on the WHO FCTC
The EU circulated a revised, compromised draft of its unified position for the upcoming 11th Conference of the Parties (COP11) to the WHO Framework Convention on Tobacco Control (FCTC) – which will take place on November 17-22, 2025 in Geneva. Compared to an earlier leaked draft, the new version adopts a softer tone on certain contentious issues: new nicotine products (e-cigarettes, heated tobacco products, nicotine pouches), cigarette filters, flavours, and environmental measures. The earlier draft had proposed strong regulation or outright bans for many non-combustible nicotine products, framing them as gateways to addiction rather than tools for smoking cessation.
The revised text emphasises evidence-based approaches, proportionate regulation, and respect for the specific approaches and policies of individual Parties to the FCTC (i.e., EU Member States). For example, the draft reframes proposals for cigarette filter bans as “consideration of regulatory options” under FCTC Articles 9 & 10 (product content/emissions) rather than immediate universal bans. Flavour bans and packaging rules for non-combustible products are still on the table, but now subject to national discretion. Environmental ambitions (such as reducing single-use plastics in tobacco products, including filters) remain, but the proposal scales back binding global mandates in favour of non-binding guidelines. Despite the moderation, the draft continues to treat non-combustible nicotine products as public-health risks and frames harm-reduction narratives as an “industry narrative” rather than a fully endorsed element of policy.
| Issue | Earlier draft | Revised draft | FCTC Article |
| Tone & framing of non-combustible nicotine products (vapes, heated tobacco, nicotine pouches) | Strong language: described them as “gateways to addiction”, proposals for sweeping bans | More measured language: emphasises “evidence-based approaches”, “proportionate regulation”, takes account of the policies of individual Parties | Article 1 (aims & objectives), Article 2 (use of terms) |
| Cigarette filters & environmental aspects | Calls for outright bans on filters (described as “potentially misleading design features”) | Reframed as “consideration of regulatory options” (product contents/emissions) | Article 9 (Regulation of product contents), Article 10 (Regulation of product emissions) |
| Flavour bans / packaging rules for non-combustible nicotine products | Proposed strict flavour bans and packaging rules extended to all non-combustible nicotine products, including those without tobacco | Flavour restrictions remain possible but now subject to national discretion (Member States may diverge) | Article 11 (Packaging and labelling of tobacco products). Possibly, Article 9 and 10 (if flavour is seen as a “contents” issue) |
| Advertising, promotion, sponsorship of alternative nicotine products | Earlier draft more aggressive on promotional/marketing restrictions across all nicotine products. (Implied via the leaked doc) | Calls for bans or restrictions on “aggressive advertising, promotion and sponsorship”, but framed as evidence-based and proportionate rather than blanket | Article 13 (Tobacco advertising, promotion and sponsorship) |
| Recognition of harm-reduction / transition from smoking | Little or no recognition of alternative nicotine products as cessation tools; focus primarily on elimination of use | The draft still cautious: continues to dismiss harm-reduction as an “industry narrative” and treats non-combustible products as public-health risks, but the tone is less extreme | Implicitly relevant to Article 14 (Demand reduction measures concerning tobacco dependence and cessation) |
| Environmental/sustainability regulation (single-use plastics, filters) | Ambitious binding global mandates to reduce single-use plastics in tobacco products (including filters etc) | Retains ambition but scales back binding mandates; instead promotes non-binding “guidelines to encourage sustainable practices” | Linked to Article 19 (Liability) or Article 22 (Cooperation in scientific, technical and legal matters) or environmental policy external to the treaty scope |
| National autonomy & flexibility for Member States | More prescriptive, less room for national variation; one size-fits-all regulatory approach implied | Emphasises that Parties’ specific approaches and policies should be taken into account; national discretion is important | Article 4 (Fundamental obligations) / Article 5 (General obligations including national legislation and cooperation) |
In summary, EU appears to be taking a more pragmatic and less sweeping-ban oriented approach in its COP11 FCTC position, leaving more room for national autonomy while still maintaining a cautious regulatory posture.
October 2025: Germany supports stronger tobacco regulation at the EU level
Germany supports efforts within the European Union to take a stronger, more coordinated stance on global tobacco control ahead of upcoming World Health Organization (WHO) negotiations. The country supports the idea of the EU presenting a unified front in pushing tougher measures and commitments internationally. However, Germany draws the line at one controversial proposal: banning cigarette filters. While some advocacy groups and member states have pushed for a ban on filters due to the environmental reasons (i.e. filters are plastic-laden waste), Germany rejects this idea4. It views a blanket filter ban as neither politically nor practically desirable.
In essence, Germany’s position can be described as: yes to stronger tobacco regulation at the EU level in terms of health and international cooperation, but no to some of the more radical regulatory measures such as filter bans (at least for now).
October 2025: There is a growing opposition to the EU tobacco tax proposal
In mid-July 2025, the European Commission unveiled a sweeping revision to the Tobacco Taxation Directive (TTD), with the aim of modernizing excise rules across the EU. The proposal envisages significantly higher minimum excise duties on cigarettes and hand-rolling tobacco, and – importantly for the first time – minimum tax floors on new tobacco and nicotine products, such as e-cigarettes, heated tobacco devices, and nicotine pouches. Under the plan, the minimum rate on cigarettes would increase from 57% to 63% of the weighted average retail price, and the fixed component would rise from €64 to €215 per 1,000 cigarettes. Hand-rolling tobacco would be taxed at 62% and at least €215 per kilogram. Meanwhile, from 2028 onward, heated tobacco would face a minimum tax rate of 55% of retail price or the Union rate of €108 per 1,000 items (€155 per kilogram). New nicotine products would be taxed at 20% to 50% of the retail price. For further details on the proposed EU minimum tax structure, see the note below from July 2025.
The Commission frames the proposal as integral to its “Europe’s Beating Cancer Plan” goals, asserting that taxation is a core leverage point for reducing tobacco consumption and harmonizing internal market distortions. Because excise and taxation measures require unanimity in the Council, the backing (or opposition) of even a minority of Member States is materially important. At least 13 EU member states have voiced opposition to or serious reservations about the TTD proposal so far.
| Member State | Nature of Opposition / Concern |
|---|---|
| Italy | Warns tax rises could drive smuggling or illegal trade; seeks review of interaction with existing laws |
| Bulgaria | Warns that increases would push consumers toward illicit markets |
| Romania | Concerned about illicit trade and tax burdens |
| Greece | Argues that the hikes are “excessively high” |
| Cyprus | Warns that steep excise hikes would sharply raise prices, worsen cigarette smuggling and ultimately reduce tax revenue rather than increasing it |
| Croatia | Objects generalized increases in minimum excise thresholds |
| Luxembourg | Questions the magnitude of the steep increases |
| Hungary | Objects the scale of the proposed tax hikes |
| Malta | Contests the blanket increases |
| Czechia | Contests the rigid minimum thresholds; open to taxing new products but with caution |
| Slovakia | Objects generalized increases in minimum excise levels |
| Portugal | Has “strong concerns” about elements of the TTD proposal, especially revenue losses |
| Sweden | Especially opposes the clauses on new tobacco & nicotine products; seen as the leader of opposition, alongside Greece, Italy, Romania and Portugal |
It should be emphasized that not all of these states necessarily reject the entire proposal; their objections often focus on specific elements (e.g. the scale of the increases, the pace of implementation, or the risk of illicit trade). For example, Bulgaria, Cyprus and Romania warn that the tax increases could drive consumers toward illegal tobacco markets, while Greece, Croatia, Luxembourg and Hungary argue that the proposed rises were excessively high. Croatia, Greece, Luxembourg, Malta, the Czech Republic, Slovakia and Hungary contest the generalized increase of the minimum excise thresholds. In summary, Sweden, Portugal, Greece, Italy and Romania seem to form the core dissident bloc. Opposition of the other 8 states may vary depending on how stringent one interprets “opposition” (full rejection versus strong reservations).
Key Risks Raised by Opponents
Opposing states raise several recurring arguments:
– Illicit trade escalation: Many warn that steep price increases will encourage smuggling and black-market sales, undermining both public health and tax revenues.
– Revenue loss & distortion: Some fear that revenue from taxed legal sales could shrink as smokers shift to unregulated sources. Portugal, for instance, calculates potential losses of up to €1.5 billion.
– Economic and social impacts: Critics caution about damage to rural economies, job losses in tobacco farming & processing, and wider social disruption in areas where tobacco is a major crop.
– Excessive or inflexible thresholds: Some states argue the minimum excise rates are set too aggressively and do not sufficiently consider national cost structures or existing tax regimes.
– Unfavorable interactions with national regimes: Italy has raised concerns about how the new thresholds would interact with its existing legislative and regulatory environment.
Assessment: Will the Proposal Get Approved?
The path ahead is fraught. A few key considerations:
– Unanimity requirement: Because changes to excise/taxation directives require unanimity in the Council, the opposition of even a small bloc can force dilution, delays or collapse.
– Political balancing & compromise: To secure approval, the Commission and pro-TTD states will likely have to negotiate carve-outs, transitional periods, and mitigations (e.g. slower implementation, special treatment for certain countries, anti-smuggling measures). Indeed, many opponents don’t reject the reform wholesale – they contest the magnitude, uniformity or pace. This offers room for compromise.
– Public health versus fiscal pressures: The Commission strongly frames tobacco excise as a dual lever for health and revenue. In an era of constrained budgets, many national governments may be reluctant to forgo the revenue argument. However, governments will also be wary of political backlash from higher consumer prices or illicit trade fallout.
– Smuggling and enforcement constraints: If the Commission cannot credibly address enforcement and cross-border illicit trade risks, skeptical member states may see the proposal as more symbolic than practical. Strong anti-fraud mechanisms will be essential if the reform is to win trust.
– Timing and external pressures: The draft comes amid high inflation, cost pressures, and geopolitical challenges. Some states may argue that this is not the moment for such radical tax upheaval. That said, delays in updating the directive (last major revision was over a decade ago) give the Commission some urgency leverage.
– Strategic bloc formations: If the pro-reform states can build a solid majority and isolate recalcitrant states, there may be political pressure on holdouts to relent (even if grudgingly). But success depends on how entrenched the opposition is and how much bargaining space exists.
Given all this, the TTD proposal stands a moderate chance of passage – but likely only in a compromised, scaled-back form. Without concessions on flexibility, transitional arrangements, and robust enforcement guarantees, it may fail to secure unanimous approval in its current form.
October 2025: European Commission considers a full ban on nicotine pouches in the EU
A leak from within the European Commission suggests that Brussels is preparing sweeping regulatory proposals targeting nicotine pouches and possibly other non-combustible nicotine products. These draft measures are intended to inform the EU’s negotiating stance at COP11, the upcoming WHO Framework Convention on Tobacco Control meeting that will take place in November 2025 in Switzerland.
Among the most drastic proposals under discussion are:
– A complete ban on nicotine pouches, halting their manufacture, sale, import, possession and use
– A ban on flavors in nicotine and tobacco products, which critics warn would strip away one of the primary incentives encouraging smokers to switch to safer alternatives
– A reversal of the burden of proof, meaning manufacturers or sellers would bear liability and legal risk even without conclusive scientific consensus
– Environmental restrictions that might outlaw certain packaging, filters, or materials used in pouches, effectively limiting how these products can be produced or distributed
– A ban on comparative marketing claims, preventing makers of nicotine pouches from communicating that their products are less harmful alternatives to smoking.
Critics warn that such measures would go well beyond what even WHO’s own FCTC Secretariat recommends, and may be counterproductive from a public health perspective. The central concern is that removing or heavily restricting safer nicotine alternatives would push many former or potential switchers back toward combustible cigarettes, undermining years of progress in reducing smoking rates.
Proponents of harm reduction point to success stories in countries like Sweden, Italy, and the Czech Republic, where alterntive nicotine products have helped lower smoking prevalence. They argue that banning or overregulating these alternatives denies adult consumers legitimate choices and may worsen health outcomes. On the fiscal side, the European Commission has also proposed adding excise duties to vape, heat-not-burn, and nicotine pouch products – with numbers as high as €15 billion annually in new revenue. Critics see this as an economic disincentive for harm reduction.
In terms of parallel national actions, France already banned all oral nicotine products (such as nicotine pouches), including penalties for manufacturing, import, and distribution. The French Government argues that nicotine – even in non-combustible oral forms – has health risks, particularly for youth, including effects on the developing brain and cardiovascular system. It cites a rise in reported poisonings in France linked to oral nicotine products as justification. However, even within France the proposal encountered legal and political scrutiny with the Council of State suggesting that the measures may be disproportionate.
As the EU moves toward COP11, the health ministers of member states will have to negotiate whether the bloc adopts a prohibitionist posture or a more evidence-based, harm-reduction approach. The outcome may reshape the regulatory environment for nicotine pouches – and by extension, influence smoking cessation trajectories – across Europe.
September 2025: The European Commission’s tobacco taxation revision proposal faces resistance
The European Commission’s proposed revision of tobacco taxation has triggered sharp criticism from member states and industry groups, who warn that the measures could “devastate” rural economies, accelerate illicit trade, and create opportunities for China to strengthen its grip on Europe’s tobacco supply chain.
The reform package, unveiled in July 2025, would take effect from 2028, with transitional periods of up to four years. At its core, the proposal raises EU-wide minimum excise duties and, for the first time, introduces harmonised tax rates for heated tobacco, e-liquids, and nicotine pouches. Another innovation is the inclusion of raw tobacco in the EU system. Although the minimum excise rate for raw tobacco is set at €0 per kilogram to avoid double taxation, its movement would now fall under the Excise Movement and Control System (EMCS), allowing customs authorities to track and monitor supplies at first processing.
In addition, the proposed TEDOR mechanism would introduce a uniform 15% call rate on member states’ tobacco excise bases, creating a new EU own resource estimated to generate around €11 billion annually for the EU budget. The Commission argues that harmonisation will reduce tax arbitrage and reinforce controls. However, industry groups caution that abrupt price increases risk fuelling illicit trade.
Recent data underline these concerns. In France, illicit consumption accounted for around 38% of the market in 2024 – equivalent to 18.7 billion cigarettes – according to a KPMG report. In the Netherlands, the share of untaxed cigarettes nearly doubled from 15% in 2021 to 25% in 2023, based on national empty-pack surveys. By contrast, Greece recorded a reduction of more than 6 percentage points in 2024, bringing the illicit share down to 17.5% – its sharpest decline in a decade. Italy also reported modest improvements, crediting stronger enforcement and cross-border cooperation.
The package has already provoked political backlash. Sweden, which holds an accession treaty carve-out for snus, voiced outright opposition. Its Finance Minister labelled the proposals “completely unacceptable,” particularly the inclusion of nicotine pouches—a category with strong domestic demand. In Portugal, the government expressed “strong concerns” over both the overall plan and the transfer of 15% of national tobacco excise revenues to the EU budget under TEDOR.
Producers in southern Europe warn of severe economic fallout. The Commission estimates that around 26,000 specialist growers remain active across 12 member states, though earlier studies suggest the broader employment impact may extend to 80,000 farm jobs EU-wide. Italy, Spain, Greece, and Poland are the largest producers. By comparison, China produces over 2 million tonnes of tobacco annually, dwarfing the EU’s 140,000 tonnes. European growers argue that tighter regulation and higher duties will erode competitiveness further and undermine existing support provided under the Common Agricultural Policy (CAP).
The Commission defends the initiative, describing the revision of the Tobacco Taxation Directive as a necessary modernisation aligned with the EU’s health and economic priorities, while also strengthening the single market. The current Directive has not been updated since 2010. Under the new proposal, the revised Directive would apply from 2028, with a four-year transitional period to ease the introduction of higher excise duties for certain products.
Because taxation measures require unanimous approval in the Council, the reform faces a difficult political path. While the Commission aims to secure agreement in time for 2028, resistance from key member states could delay or dilute the package. Ultimately, the debate highlights a long-standing tension in EU tobacco policy: balancing public health objectives with the risks of economic disruption and illicit trade.
August 2025: Portugal joins the dissidents opposing the proposed EU TTD revision
A group of EU members, led by Sweden and including Greece, Italy, and Romania, already opposed the European Commission’s proposal to revise the Tobacco Taxation Directive (2011/64/EU). Portugal joined the dissident blocraising “strong concerns” about the EU TTD proposal unveiled on July 16, 2025, including updates to excise-duty rules for manufactured tobacco, a recast of excise legislation and a plan to channel part of tobacco-tax revenues into the EU budget5. Portugal argues that the reforms could harm harm‑reduction efforts, fuel illegal trade and divert billions of euros from national coffers.
Portugal opposes both EC’s proposals to revise nicotine-related legislation and the additional tax (TEDOR) of 15% to generate more revenue in the frame of the next long-term budget. The Portuguese Government summarizes three objections to the Commission’s draft directive:
– Equal taxation of cigarettes and less harmful (new nicotine) products: The Commission wants to apply the same taxation rules to all “smoking” products. Portugal believes that less harmful alternatives such as e‑cigarettes or heated tobacco should be taxed less heavily to encourage smokers to switch, because taxes are designed to be a disincentive.
– Risk of illicit trade: Higher excise rates will inevitably raise retail prices. Portugal warns that this will push more consumers into illicit channels, pointing to countries where steep hikes have already boosted illegal trade.
– Loss of national tax revenue. The Commission also proposes to transfer part of tobacco‑tax revenue from member states to the Union budget. Portugal estimates that the current draft could cost up to €1.5 billion in national revenues and says it will negotiate how much revenue is earmarked for Brussels during talks on the Multiannual Financial Framework 2028‑2034.
The Commission’s reform package aims to update excise rules for manufactured tobacco, which have not been substantially revised since 2010 and bring them into line with public‑health objectives. Brussels argues that the existing minimum tax rates have lost traction because national taxes are already higher; smoking prevalence remains around 24 % and is not falling quickly enough to meet the EU’s target of reducing tobacco use to under 5 % by 2040. New products have entered the market, and persistent illicit trade underscores the need for modernisation.
The Commission is also trying to diversify its revenue sources. Under its Own Resources proposal, part of the minimum excise duty on tobacco would fund the EU budget. The tobacco excise duty own resource (TEDOR) would require member states to contribute 15 % of the revenue generated from applying the minimum excise rate on manufactured tobacco and related products to the EU budget. This measure would need unanimous approval in the Council and, if adopted, would apply from 1 January 2028.
The Commission’s proposal will now be examined by the Council and the European Parliament. Member states must agree unanimously on the new own‑resources system. The coming negotiations will test whether EU governments can balance health policy ambitions, fiscal sovereignty and market realities while moving towards the goal of a tobacco‑free Europe.
July 2025: European Commission adopted a proposal for a recast of the Tobacco Taxation Directive
Rationale for revision: The last substantial revision of the EU Tobacco Tax Directive (TTD) was adopted in 2010 via Directive 2011/64/EU. Since then, significant changes in consumer behavior and product innovation, including the rise of new nicotine products like vapes, heated tobacco, and nicotine pouches, have rendered the existing tax structure outdated. The Directive’s existing minimum rates have become increasingly ineffective in influencing Member States’ fiscal policies. Moreover, large tax disparities among Member States have created incentives for cross-border shopping and illicit trade, undermining both public health objectives and tax revenues. Revenue estimates suggest the revisions could generate an additional €13.9 billion from traditional products and €0.9–1.7 billion from new products on an annual basis.
On 16 July 2025, the Commission adopted a proposal for a recast of the Tobacco Taxation Directive. The revision aligns with broader EU strategies, particularly Europe’s Beating Cancer Plan, aiming for a tobacco-free generation (<5% smoking prevalence by 2040). It also supports commitments under the WHO Framework Convention on Tobacco Control. The core objectives of the recast are to harmonize tax treatment across all nicotine-containing products, deter tax-induced product substitution, increase health protections through pricing, and curb illicit trade by incorporating raw tobacco and applying movement control systems. Download the draft document: EU TTD Proposal
A key structural reform is the shift from fixed nominal tax rates to a hybrid system: two-thirds of excise duty remains in nominal terms, while one-third is adjusted for each Member State’s purchasing power parity (PPP). This adjustment is updated triennially based on Eurostat’s Price Level Index (PLI), ensuring affordability-based fairness. Similarly, minimum rates will be revised every three years to reflect inflation via the Harmonised Index of Consumer Prices (HICP).
Moreover, the Directive now explicitly includes new product categories: heated tobcco, nicotine pouches, liquids for vapes (including nicotine-free), other smokeless products, and raw tobacco. This expansion addresses market loopholes and closes tax avoidance paths (e.g., mixing of high-strength nicotine with unregulated liquids). A “catch-all” definition is included to future-proof regulation.
Cigarettes remain the benchmark, but minimum rates for cigars, cigarillos, fine-cut tobacco, and waterpipe tobacco will rise progressively to reduce the price gap and substitution risk. Waterpipe tobacco will have its own category and lower rate reflecting consumption characteristics. Heated tobacco will also be distinguished with specific rates per gram or per unit. The new tax structure includes a phased approach for newly regulated products. By way of derogation, for 2028/29 and 2030/31, Member States may apply reduced excise rates for cigars, cigarillos, other smoking tobacco, waterpipe tobacco and heated tobacco. Nicotine pouches and other nicotine products will be subject to a four-year transitional period, with a 50% application of the minimum excise duty after two years (from January 1, 2030) and full implementation by the end of the fourth year (January 1, 2032).
To fight illicit manufacturing, raw tobacco will be included under the excise regime, though taxed at a zero minimum rate. Movement control rules from the Horizontal Directive will apply, particularly post-curing and drying. This enables tax monitoring while minimizing burden on growers.
| Product Category | Current Minimum Excise Tax | Proposed Minimum Excise Tax |
|---|---|---|
| Cigarettes | At least 57% of the weighted average RSP. Not be less than €64 per 1,000 cigarettes. Member States which levy an excise duty of at least €101 per 1,000 cigarettes not obliged to comply with 57% requirement | At least 63% of the weighted average RSP. Not be less than €215 per 1,000 cigarettes. Member States which levy an excise duty of at least €274 per 1,000 cigarettes not obliged to comply with 63% requirement |
| Fine-cut tobacco | 40% of the weighted RSP or the Union rate of €40 per kilogram | 62% of the weighted RSP or the Union rate of €215 per kilogram |
| Cigars | 5% of the RSP or the Union rate of €12 per 1,000 items or per kilogram | 40% of the RSP or the Union rate of €124 per 1,000 items or per kilogram |
| Cigarillos | — | 40% of the RSP or the Union rate of €143 per 1,000 items or per kilogram |
| Waterpipe tobacco | — | 50% of the RSP or the Union rate of €107 per kilogram |
| Heated tobacco | — | 55% of the RSP or the Union rate of €108 per 1,000 items or €155 per kilogram |
| E-cigarette liquids (<15mg/ml) | — | 20% of the RSP or the Union rate of €0.12 per millilitre (including nicotine-free e-liquids) |
| E-cigarette liquids (>15mg/ml) | — | 40% of the RSP or the Union rate of €0.36 per millilitre |
| Nicotine pouches/other nicotine products | — | 25% (50%) of the RSP or the Union rate of €71.5 (€143) per kilogram |
| Other nicotine products | — | 25% (50%) of the RSP |
| Raw tobacco | — | €0 minimum tax, but subject to Excise Movement and Control System (EMCS) checks |
The draft revision of the Tobacco Tax Directive (TTD) will proceed through the EU’s special legislative procedure under Article 113 of the Treaty on the Functioning of the European Union. This requires unanimous approval by the Council after consultation with the European Parliament and the European Economic and Social Committee. Once the directive is adopted, Member States will be required to transpose its provisions into national law within a designated implementation period.
The European Commission, together with Member States, will monitor implementation through the Committee on Excise Duty and the Excise Movement and Control System (EMCS). The EMCS will be extended to include new categories such as raw tobacco and e-liquids, enabling real-time tracking and enhancing enforcement against tax evasion and illicit trade.
A formal evaluation of the directive’s impact will be conducted five years after the date of its application. This will allow sufficient time for Member States to implement the rules and for the market to adjust, enabling the Commission to assess progress toward health, market, and revenue objectives. Additionally, the Commission will have the authority to review and, if needed, propose revisions to minimum excise rates for emerging product categories based on regulatory and market developments.
July 2025: EU Tobacco Products Directive (TPD) and EU Tobacco Taxation Directive (TTD) revisions are pushed back to mid-2026
The European Commission’s revision of the EU Tobacco Products Directive (TPD) andand EU Tobacco Taxation Directive (TTD), initially slated for 2025, has now been pushed back to mid‑2026 due to the complexity of the issues, need for more comprehensive data collection and division in opinions. The revision is integral to modernizing EU tobacco regulation, yet it remains stalled, reflecting deep differences among member states.
At the heart of the debate is the Commission’s proposal to impose broad taxation across both traditional and new tobacco / nicotine products, channeling up to €15 billion annually into the EU’s own budget under its next Multiannual Financial Framework. Proponents, including the European Commission President, argue that this would boost the EU’s own resources. Public health advocates and some policymakers support the reform, claiming it would reduce consumption and level the playing field across products and markets.
However, harm-reduction proponents warn that a “one-size-fits-all” tax model may disincentivize the use of safer nicotine alternatives, stalling progress in smoking cessation. Sweden is leading opposition to the proposed EU-wide tobacco tax reform, particularly due to the uniquely high popularity of snus and nicotine pouches – products that have contributed to Sweden achieving the lowest smoking rate (5.3%) in the EU. Swedish officials argue that taxing these low-risk alternatives at the same rate as combustible tobacco undermines public health goals. Greece, Italy, and Romania also voiced resistance, largely due to concerns that transferring tobacco tax revenues from national budgets to the EU would hurt their fiscal autonomy. They worry that the new structure could increase the size of illicit tobacco markets, which already pose significant challenges in Southern and Eastern Europe.
With both EU TPD and EU TTD revisions delayed, uncertainty remains high for the nicotine consumers and industry players across the bloc.
July 2025: EU wants to directly tax tobacco products, some Member States resist
In a bold attempt to reshape the European Union’s long-term fiscal strategy as part of the Multi-annual Financial Framework (MFF) – which sets the maximum amounts that the EU could spend in different policy areas over a period of at least five years, European Commission considers using tobacco taxation as a direct revenue stream to fund its post-2027 budget. Under the draft plan, the EU would introduce an “own resource” by significantly increasing excise taxes on tobacco and nicotine products and redirecting some of the revenues to the EU’s central budget – instead of the national government budgets. The Commission estimates the move could generate up to €15 billion annually, helping to plug budget gaps and finance shared priorities.
The proposal outlines aggressive tax hikes: a €3.60 minimum per pack of 20 cigarettes (- up from the current €1.80); €0.10 per mL of e-liquid for e-cigarettes; minimum 55% of retail price for heated tobacco and minimum 50% of the retail price for nicotine pouches. New nicotine products are currently not subjected to EU-wide tax harmonization. Framed as both a public health initiative and a revenue mechanism, the plan seeks to harmonize taxation across the bloc while creating a new source of EU income independent of member-state contributions.
However, the proposal has triggered fierce resistance – especially from Sweden, whose Finance Minister firmly rejected the idea, calling it “completely unacceptable.” Sweden insists that taxation should remain a national competence and views the draft as a direct threat to its successful harm-reduction model, which heavily relies on low-tax nicotine pouches and snus as alternatives to smoking. With smoking rates at just 5.3%, the lowest in the EU, Sweden sees the differentiated taxation of products based on risk as key to its public health gains.
Beyond Sweden, other member states including Italy, Bulgaria, Greece, and Romania have raised objections. They argue the EU’s approach could destabilize national tax systems, shrink domestic revenues, and reverse progress in tobacco harm reduction. Critics also warn of unintended consequences – such as pushing price-sensitive consumers back to combustible tobacco or toward a thriving illicit market, which already represents 8.5% of EU cigarette consumption. As the EU pushes for greater financial autonomy, its challenge will be to balance fiscal innovation with respect for national sovereignty and health policy diversity.
June 2025: The European Commission is looking into ramping up cigarette taxes
After 15 EU Finance Ministers sent a letter to the European Commission (EC) President urging action on the EU Tobacco Taxation Directive (EU TTD), EC is looking into ramping up taxes on cigarettes and other tobacco/nicotine products. One sticky point is on the alternative nicotine products, including electronic cigarettes, heated tobacco and nicotine pouches. These products are currently regulated differently by EU member states as there is no EU-wide excise tax regulation. Many member states demand a harmonization on alternative nicotine products as part of the EU TTD revision. However, unanimity among member states, required to pass a revision including alternative nicotine products, is far from certain considering that Italy, Greece and Romania have already asked the Commission not to treat alternative products, such as heated tobacco, the same way as traditional cigarettes.
An internal impact assessment document suggests the same excise rates as the 2022 proposal, increased by 20% taking into account inflation. According to the document, the Commission seeks a 139% increase in cigarette taxes from €90/1,000 units to €215/1,000 units (i.e. €4.3 for a pack of 20 cigarettes). Excise increase for rolling tobacco is even higher as the Commision seeks an harmonization between machine-made and roll-your-own cigarettes: 258% from €60/kg to €215/kg. Excise for cigars & cigarillos will increase 1,090%, from €12/1,000 units or kg to €143/1,000 units or kg. For waterpipe tobacco (shisha), which is mostly imported, the suggested tax is lower than roll-your-own cigarettes at €107/kg. Nicotine pouches are proposed to be taxed at €143/kg. Electronic cigarettes are proposed to be taxed based on volume: €0.36/ml for e-liquids with more than 15mg/ml nicotine concentration (capped at 20 mg/ml in the EU) and €0.12/ml for lower strength e-liquids. The document suggests €108/1,000 units or €155/kg excise tax for heated tobacco products – substantially lower than cigarettes6.
May 2025: European Commission is working on a a proposal to revise the Tobacco Tax Directive
The long-awaited revision to the Council Directive 2011/64/EU (Directive on the structure and rates of excise duty applied to manufactured tobacco; shortly known as the EU Tobacco Taxation Directive or EU TTD) is back on the move. In the European Commission’s 2021 work program, the Commission announced a revision of the Council Directive 2011/64/EU on excise rules for tobacco was ongoing. According to the draft 2022 Bill, the minimum excise tax would be increased by 100% for cigarettes, by 200% for roll-your-own cigarettes and by 900% for cigars. However, the revision was postponed in 2022 amid concerns about the impact of tobacco tax hike at a time when the inflation was running hot across the EU. As the inflation in the EU eases from 10.6% in October 2022 to 2.2% in April 2025, EU TTD revision is back on the table.
Altough the EU TTD revision was controversially left out of the Commission’s 2025 work program, some states are pushing for higher taxes on both tobacco products and alternative products, including e-cigarettes (vapes), heated tobacco, and nicotine pouches. Unlike traditional tobacco, alternative products still lack an EU-wide excise framework.The EU Tax Commissioner has been testing the waters for a revision and 15 EU Finance Ministers sent a letter to EC President urging action. The letter – signed by Austria, Belgium, Bulgaria, Czechia, Denmark, Estonia, Finland, France, Germany, Ireland, Latvia, The Netherlands, Slovakia, Slovenia and Spain – called on the Commission to take “without delay the necessary steps” to update the directive. The ministers underlined that the lack of action on EU TTD revision has led to the “distortions in the single market” as member states have taken measures individually. In March 2025, a letter from 16 Health Ministers called on to re-visit all tobacco-related legislation, including taxation. The latest letter is significant given that finance ministers often clash with their health minsters over tax related matters.
Nevertheless, a revision to the EU TTD requires unanimity among member states and 12 countries did not sign the letter – with Romania, Italy, and Greece among the most vocal opponents of a revision.
March 2025: Regulation of nicotine pouches in the European Union
In the absence of an EU-wide regulation, some member states have already introduced or are planning to introduce national rules on the sales & marketing of nicotine pouches – ranging from age restrictions to a complete ban.
| Country | Regulation |
| Austria | Health Ministry proposed strict advertising rules, health warnings on packs and no sales to minors (e.g. restrictions similar to cigarettes) |
| Belgium | Banned in 2023 |
| Czech Republic | No sales to minors (under-18s) and max nicotine concentration limited to 10 milligrams per pouch |
| Denmark | Heavily taxed. “Seductive” aromas and flavors (anything other than tobacco and menthol) are banned in tobacco replacement products. Health Ministry is authorized to limit the nicotine concentration in pouches |
| Finland | Categorized as tobacco product in October 2024. All flavors, except for mint and menthol, are banned. Further restrictions to limit max nicotine concentration (to 20 milligrams per pouch), require health warnings on packaging and introduce retail licensing are under consideration |
| France | Banned in February 2025 |
| Germany | Classified as Food. Nicotine in food (beyond minuscule amounts) is considered a health hazard |
| Hungary | For all “nicotine-containing smoking substitutes”: mandatory health warnings and max nicotine concetration limited to 17 milligrams |
| Latvia | No sales to minors (under-20s) |
| Luxembourg | No sales to minors. Taxed. Advertising & promotions are banned. Restrictions on flavors and max nicotine concentration are under consideration |
| Malta | To be regulated as part of the national Tobacco Control Strategy 2025–2030 |
| Poland | A ban on flavored nicotine pouches is under consideration |
| Netherlands | Banned in January 2025 |
March 2025: 12 EU countries demand EU TPD revision to include new nicotine products
12 EU countries, led by Netherlands and including Belgium, Estonia, Finland, France, Ireland, Latvia, Lithuania, Luxembourg, Malta, Slovenia and Spain, sent a letter to the EU Health Commissioner to urge the revision of the EU Tobacco Products Directive (TPD). The signatories are particularly worried about the use of e-cigarettes and nicotine pouches by the youth. The 2014 EU TPD does not cover these new nicotine products.
The European Commission (EC) is asked to develop, propose and implement future-proof EU legislation to reduce the attractiveness of e-cigarettes and other emerging nicotine products (like nicotine pouches), especially to young people – including “comprehensive restrictions” on flavors, maximum nicotine levels and plain packaging. The signatories also underlined that national measures are undermined by cross-border sales and social media platforms7.
November 2024: Council of the EU recommends the extension of smoke-free environments
Council of the EU (i.e. ministers from the member states) adopted a recommendation that encourages EU countries to broaden the scope of their existing protection against second-hand smoke exposure to include key outdoor areas (playgrounds, restaurant terraces, beaches) and public transportation8.
The new measures also apply to the emerging tobacco and tobacco-related products, that have been launched since the adoption of the last Council recommendation on smoke-free areas in 2009, including e-cigarettes, heated tobacco products and heated herbal products. The Council states that their emissions may be inhaled by bystanders, exposing them to potentially harmful levels of toxicants, contaminants, and other air pollutants.
The recommendation aims to help reduce exposure to second-hand smoke and aerosols and achieve a tobacco-free generation (i.e. less than 5% of the population uses tobacco products) in Europe by 2040 as set out in Europe’s Beating Cancer Plan. The progress made in implementing the (legally non-binding) recommendation will be reported for the first time within five years.
Note that Council’s recommendation comes a few days after a related resolution was overwhelmingly rejected in the European Parliament (- see below for further details).
November 2024: The resolution on smoke-free environments is overwhelmingly rejected in the EU Parliament
The European Parliament voted overwhelmingly against the resolution on extending the smoke-free environments (- see below for further details): 378 against, 152 in favour, and 26 absentees9 .
The resolution was initially backed by a broad coalition of political groups (with a clear majority in the Parliament); however, the amendments proposed by the right-wing groups, to exclude novel tobacco products (vapes & heated tobacco products) from the text, sparked criticism from the other political groups and led to the rejection of the resolution. The proposed amendments are claimed to be against the nature of the original proposal, which aimed to broaden existing rules by addressing the risks posed by vapes and as well as (combusted & heated) tobacco.
The other contested aspect of the resolution was the extension of smoking bans to outdoor or semi-outdoor areas – defined as partially covered or enclosed spaces like rooftops, balconies, porches, and patios – associated with service establishments such as restaurants, bars and cafes.
The European Council will also vote on the proposal at the next Health Ministers’ meeting. The guidelines, once adopted, would not be legally binding but are intended to provide a framework for Member States to follow as part of wider efforts to curb tobacco-related harm.
September 2024: EU is considering to ban smoking and vaping in outdoor areas
The European Commission (EC) will propose extending the smoking bans to outdoor areas, such as cafe terraces, bus stops, and zoos10. The proposed ban expands the 2009 guidelines intended to cut exposure to second-hand smoke in public places, workplaces, and public transport. Smoking bans in outdoor spaces are currently regulated by individual member states on a case-by-case basis. The list of smoke-free environments varies greatly among the member states while the general level of coverage of outdoor spaces in smoke-free policies is low. Under the new guidelines, smoke-free zones are extended to outdoor or semi-outdoor areas including
– partially covered or enclosed spaces like rooftops, balconies, porches, and patios, associated with service establishments such as restaurants, bars, and cafes
– public transport hubs such as bus stops
– outdoor areas linked to workplaces, hospitals and nursing homes
– recreational areas where children are present, including public playgrounds, amusement parks, swimming pools, and zoos
– educational premises from pre-school childcare to university.
With the aim to clear public spaces from all types of aerosols, the proposed draft also covers a broader range of new & emerging products, including heated tobacco products and vapes, whether or not they contain nicotine. Based on a broader definition, the EC seeks to include “tobacco surrogates and any other smoke and/or aerosol emitting products” in the ban. EC states that these products, often marketed as safer alternatives to traditional smoking, still expose bystanders to harmful chemicals through second-hand aerosols and the evidence on the use of emerging products as a cessation aid is inconclusive.
The EC claims that there is growing evidence that second-hand exposure to “aerosols from electronic cigarettes, both with and without nicotine, expose bystanders to quantifiable levels of particulate matter and key toxicants and contaminants”. The guidelines aren’t legally binding, but provide a framework for member states to follow as part of wider efforts to curb tobacco harm.
The EC’s proposal, originally planned for January 2024, has been delayed, raising concerns about the EU’s commitment to its anti-tobacco agenda. A linked reform to the EU’s Tobacco Taxation Directive has now also been pushed to 2025, and some have questioned whether the tobacco industry influenced those decisions. In a December 2023 report, the EU Ombudsman criticised the Commission for failing to disclose meetings with tobacco industry lobbyists.
The revised guidelines are part of the EC’s larger Beating Cancer Plan, which aims to achieve a “tobacco-free generation” by 2040, to cut tobacco use by 30% by 2025, and to see the share of the EU population smoking cut to 5%.
July 2024: Estonia Pushes for EU-Wide Tightening of Rules on Novel Nicotine Products
In July 2024, Estonia advanced a proposal calling for stricter regulation of novel nicotine products across the European Union, complementing earlier initiatives led by Denmark and Latvia. The proposal was approved by the EU Affairs Committee of the Estonian parliament11, signaling growing momentum among Member States for coordinated action at the EU level.
Estonia advocates for a harmonized regulatory framework and calls on the European Commission to introduce a comprehensive set of measures. These include establishing a restricted list of permitted flavours, setting upper limits on nicotine content, banning online sales, and prohibiting disposable e-cigarettes. The proposal also supports the introduction of standardized packaging to reduce product appeal and the expansion of smoke-free areas to cover a broader range of nicotine products.
The initiative is underpinned by rising usage trends domestically. According to national health surveys, e-cigarette use among adults increased significantly from 3.8% in 2020 to 10.4% in 2022. At the same time, nicotine pouch consumption has gained traction, particularly among younger demographics, with around 20% of male respondents aged 16–24 reporting regular use in 2022. These trends have reinforced Estonia’s position that stronger, coordinated EU-level measures are needed to address the evolving landscape of nicotine products.
June 2024: EU Health Ministers Weigh Sweeping Youth-Focused Curbs on Novel Nicotine Products
EU Health Ministers, from 27 member states, are set to discuss two different proposals12,13 on “strengthening the EU-wide measures to protect the youth from novel tobacco and nicotine products” at the EPSCO Council (Health) meeting on 21 June 2024.
The Latvian proposal (on behalf of 10 member states) highlights the high popularity of vapes among the youth (surpassing conventional cigarettes in popularity) and underlines enticing flavors and digital & social media marketing as the two key facilitators of product adoption by the youth. The proposal calls for a comprehensive approach at the EU-level so that all previously-excluded tobacco and nicotine products (i.e. vapes, nicotine pouches and heated tobacco-free nicotine products) are included in the flavor or characterizing flavor ban. Moreover, the proposal suggests legislative harmonization for distant sale of tobacco & nicotine products and cooperation among the member states to control the cross-border trade.
The Danish proposal (on behalf of 12 member states) highlights the increasing consumption of a broad range of tobacco and nicotine products among the youth and suggests a list of initiatives: a ban on flavours in all nicotine products, a limit on nicotine content and, where necessary, an outright ban on certain products.
March 2024: EU Scrutinizes Zero-Tobacco Heat Sticks as Regulatory Gaps Emerge
Reuters reported that several EU member states ar14e considering stricter rules to address regulatory gaps surrounding so-called “zero-tobacco” heat sticks. These products – typically made from reconstituted rooibos or similar plant material infused with nicotine and flavours – have been positioned as alternatives to traditional heated tobacco consumables. Their design allows manufacturers to operate outside the scope of the EU’s flavoured heated tobacco ban, highlighting both a loophole in the current framework and the industry’s capacity to adapt under tighter regulation.
The European Commission acknowledged the issue, noting that EU tobacco legislation is currently under review. Any potential changes would be subject to a formal process, including public consultation and an impact assessment. This suggests that, while regulatory tightening is under consideration, EU-level action is likely to take time.
In the interim, several member states are moving ahead independently. Latvia, Lithuania, and Croatia are exploring stronger national measures to bring these products under existing tobacco control frameworks. In Latvia, for example, a draft bill proposes classifying zero-tobacco heat sticks as “tobacco substitutes,” which would subject them to similar regulatory controls, including a planned ban on all flavours except tobacco from 2025.
At the same time, industry adoption of these products is accelerating. British American Tobacco has launched its “veo” zero-tobacco heat sticks in 11 European markets and is planning a broader global rollout. According to Reuters, veo has already gained meaningful traction in several countries, accounting for approximately 50% of BAT’s heated tobacco volumes in Czechia and Romania, around 30% in Germany, and close to 20% in Greece.
Overall, the rise of zero-tobacco heat sticks underscores a familiar dynamic in tobacco regulation: policy frameworks tightening around one category often prompt rapid innovation in adjacent segments. Policymakers are now increasingly focused on ensuring that regulatory intent keeps pace with product evolution.
February 2024: EU Tobacco Policy at a Crossroads with Post-Election Decisions to Shape Regulation of Emerging Nicotine Products
“Political decisions” about the future of novel tobacco and nicotine products in the EU will be made by the next European Commission, the EU spokesperson stated15. The 2024 European Parliament election is scheduled to be held on 6-9 June 2024.
The EU legislative framework for tobacco control, the so-called EU Tobacco Products Directive (EU TPD), aims to improve the functioning of the internal market for tobacco and related products, while ensuring a high level of health protection for European citizens. The latest revision of the Directive (2014/40/EU), which is based on the proposal of the European Commission, entered into force on 19 May 2014 and became applicable in the EU Member States on 20 May 2016.
In February 2023, the European Commission launched an evaluation of the framework for tobacco control. The EU TPD (2014/40/EU) currently covers traditional cigarettes and novel products, such as e-cigarettes and heated tobacco, but does not include new products that emerged after 2014 – such as the nicotine pouches and heated nicotine sticks. Due to the lack of an EU framework, Member States have regulated these products differently: for instance, Finland and Denmark legalized nicotine pouches while Belgium and the Netherlands banned them.
January 2024: EU Flavoured Heated Tobacco Ban: Implementation Status Update
The EU’s ban on flavoured heated tobacco products (HTPs) stems from an amendment to Directive 2014/40/EU, adopted by the European Commission in June 2022. The amendment removed certain exemptions previously granted to HTPs and required member states to transpose the changes into national law by July 23, 2023, with application from October 23, 2023. In practice, however, several countries delayed implementation into 2024, reflecting differences in legislative timelines and regulatory interpretation.
As of January 2024, implementation across member states remains uneven but is progressing. In Bulgaria, the ban on flavoured heated tobacco products came into force on January 1, 2024, marking a full alignment with the updated EU framework. In Portugal, new rules took effect on January 16, 2024. These measures harmonize the regulatory treatment of HTPs with that of traditional cigarettes, particularly in relation to health warnings and the prohibition of characterising flavours. In Slovakia, implementation has been deferred further, with the EU-wide ban now scheduled to take effect from January 2025.
In Spain, the government approved a decree aligning HTP regulation with combustible cigarettes. The decree introduces a ban on flavoured HTPs and mandates the use of cigarette-style health warnings on packaging. It is set to enter into force three months after publication in the official gazette. However, a regulatory dispute has emerged: Philip Morris International argues that the new labelling requirements apply only to heated products involving combustion, and therefore exclude IQOS heatsticks. The Spanish Ministry of Health has rejected this interpretation, maintaining that the rules apply more broadly to HTPs.
Overall, while the EU framework has been in place since late 2022, the rollout at the national level continues to vary, highlighting both administrative delays and differing legal interpretations. The direction of travel remains clear: a gradual tightening of regulation on heated tobacco products, bringing them increasingly in line with traditional combustible tobacco.
October 2023: EU Weighs Potential Nicotine Pouch Ban Ahead of TPD Revision
Discussions intensified within the European Union around the potential introduction of a full-scale ban on nicotine pouches, as part of the forthcoming revision of the Tobacco Products Directive (TPD), expected in 2024. The debate gained visibility after a pro-smoke-free member of the European Parliament revealed the existence of an internal EU report that considers the prohibition of nicotine pouches. The document forms part of the preparatory work underpinning the broader review of EU tobacco legislation.
While no formal proposal has been tabled, regulatory pressure on the category is already evident at the national level. Belgium has implemented an outright ban on the sale of nicotine pouches, while in Netherlands, a de facto ban is in place through strict regulatory interpretation. In Germany, legal uncertainty has also constrained market development; notably, British American Tobacco withdrew its Velo nicotine pouch brand from the market in July 2021 due to an unclear regulatory framework.
Industry responses reflect this uncertain landscape. At its 2023 Investor Day, Philip Morris International refrained from outlining detailed EU expansion plans for its ZYN nicotine pouch brand, citing regulatory considerations as a key constraint. An EU-wide ban, if pursued, would represent a significant escalation in regulatory oversight and could materially limit the category’s growth trajectory, particularly in Europe, which is viewed as a key market for next-generation nicotine products. At the same time, the absence of a harmonized framework continues to create fragmentation, with member states adopting divergent approaches in the interim.
November 2022: EU Enforces Flavoured Heated Tobacco Ban as Regulatory Scope Expands
The European Union’s ban on flavoured heated tobacco products (HTPs) has formally taken effect across member states, following a targeted amendment to the EU Tobacco Products Directive. On June 29, 2022, the European Commission adopted changes to Directive 2014/40/EU to remove certain exemptions previously granted to HTPs16. The measure was subsequently published on November 23, 2022, requiring member states to transpose the rules into national law by July 23, 2023, and to begin enforcement from October 23, 2023.
The regulatory shift was triggered by what the Commission defined as a “substantial change of circumstances” in the EU tobacco market. Heated tobacco products experienced rapid growth, with sales volumes increasing by more than 10% in at least five member states and surpassing a 2.5% share of total EU tobacco sales at the retail level. This threshold activated provisions allowing stricter regulation, particularly around flavourings, which are widely seen as a key driver of product adoption.
The amendment forms part of the EU’s broader Europe’s Beating Cancer Plan, which aims to reduce tobacco use to below 5% of the population by 2040, down from roughly 25% in 2022. Extending flavour restrictions to HTPs reflects a clear policy direction: narrowing regulatory gaps between traditional combustible products and newer nicotine formats.
In the lead-up to the October 2023 enforcement deadline, industry players moved to adapt their product portfolios. British American Tobacco accelerated the rollout of flavoured “veo” sticks for its glo device, notably designed without containing tobacco, potentially positioning them outside the scope of the ban. Meanwhile, Philip Morris International introduced “Levia” at its 2023 Investor Day – a tobacco-free consumable for the IQOS platform that uses infused nicotine rather than processed tobacco. These developments highlight how regulatory tightening in one segment is prompting innovation and strategic shifts toward adjacent product categories, particularly tobacco-free alternatives that may fall under different regulatory frameworks.
June 2022: EU Moves to Ban Flavoured Heated Tobacco as Category Gains Traction
In June 2022, the European Commission proposed a ban on flavoured heated tobacco products (HTPs), marking a significant extension of the EU’s existing tobacco control framework to newer nicotine categories. The initiative was driven by the rapid growth of HTP consumption across the bloc, with the Commission estimating that these products had surpassed 2.5% of total tobacco sales – crossing the regulatory threshold that triggers stricter intervention17.
Heated tobacco products had initially been exempt from earlier EU flavour restrictions applied to cigarettes and roll-your-own tobacco. However, their increasing popularity – particularly flavoured variants – raised concerns among policymakers about their appeal to younger consumers and their potential to undermine broader public health objectives. The proposed measure therefore sought to remove “characterising flavours” from HTPs, aligning them more closely with the regulatory treatment of traditional combustible products.
The proposal formed part of the EU’s broader “Beating Cancer Plan,” which aims to reduce smoking prevalence and limit the uptake of nicotine products across member states. By targeting flavours – widely viewed as a key driver of product experimentation and adoption – the Commission aimed to curb further growth in the category.
Post-publication note: The EU-wide ban on flavoured heated tobacco products was formally adopted later in 2022 and entered into force in November 2022. Member states were subsequently required to transpose the directive into national law, with implementation continuing into 2023 and beyond. While the regulation applies across the EU, the pace and specifics of enforcement have varied at the national level, reflecting differences in legislative processes and market structures. Nonetheless, the measure represents a clear signal of the EU’s intent to tighten oversight of emerging nicotine products and reduce regulatory gaps between traditional and next-generation tobacco categories.
27 EU Member States & Accession Dates
| Austria (1995) | Denmark (1973) | Hungary (2004) | Malta (2004) | Slovenia (2004) |
| Belgium (1958) | Estonia (2004) | Ireland (1973) | Netherlands (1958) | Spain (1986) |
| Bulgaria (2007) | Finland (1995) | Italy (1958) | Poland (2004) | Sweden (1995) |
| Croatia (2013) | France (1958) | Latvia (2004) | Portugal (1986) | |
| Cyprus (2004) | Germany (1958) | Lithuania (2004) | Romania (2007) | |
| Czech Rep. (2004) | Greece (1981) | Luxembourg (1958) | Slovakia (2004) |
References:
- https://www.who.int/europe/news/item/26-02-2026-tobacco-crisis–who-european-region-projected-to-remain-worst-globally-by-2030 ↩︎
- https://www.euractiv.com/news/exclusive-danish-presidency-targets-heated-tobacco-in-new-eu-tax-hike-proposal ↩︎
- https://www.euractiv.com/news/eu-to-prioritise-evidence-to-minimise-tobacco-industry-pushback-in-upcoming-law ↩︎
- https://www.euractiv.com/news/exclusive-germany-backs-tougher-eu-stance-on-tobacco-at-who-talks-but-rejects-filter-ban ↩︎
- https://www.eureporter.co/world/portugal/2025/08/04/portugal-questions-eu-tobacco-tax-overhaul-warns-of-illicit-trade-and-budgetary-impacts ↩︎
- https://www.euractiv.com/section/health-consumers/news/european-commission-mulls-139-tax-rise-on-cigarettes-says-internal-document ↩︎
- https://www.politico.eu/article/the-netherlands-leads-call-for-eu-to-clamp-down-on-vapes ↩︎
- https://www.consilium.europa.eu/en/press/press-releases/2024/12/03/council-recommends-increased-protection-against-second-hand-smoke-and-aerosols ↩︎
- https://www.euronews.com/health/2024/11/28/smoking-ban-resolution-strongly-rejected-by-eu-parliament ↩︎
- EC: Updated recommendation on smoke-free environments ↩︎
- https://www.baltictimes.com/estonia_recommends_stricter_eu_regulations_on_tobacco__nicotine_products/ ↩︎
- https://data.consilium.europa.eu/doc/document/ST-10268-2024-INIT/EN/pdf ↩︎
- https://www.parlament.gv.at/dokument/XXVII/EU/189136/imfname_11385752.pdf ↩︎
- https://www.reuters.com/business/retail-consumer/european-regulators-close-big-tobaccos-new-tea-sticks-2024-03-28 ↩︎
- Next Commission will make ‘political’ decisions on tobacco directive, EU official says – Euractiv ↩︎
- https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2022.283.01.0004.01.ENG ↩︎
- https://www.reuters.com/world/europe/eu-proposes-ban-flavoured-heated-tobacco-products-2022-06-29 ↩︎
