EU finance ministers failed to agree on a revision of the Tobacco Excise Directive (TED) after Sweden refused to support new minimum taxes on nicotine pouches — dealing a setback to efforts to bring pouches under EU-wide excise duty for the first time.

The proposal, put forward by the Cypriot EU Council presidency, would have taxed nicotine pouches at approximately SEK 1,045 per kilogram — more than double the current rate for tobacco snus in Sweden. It required unanimous support from all member states. Sweden was the holdout.

What happened

The European Commission proposed recasting the Tobacco Taxation Directive in July 2025, arguing that rules dating from 2011 fail to account for new nicotine products like pouches, vapes, and heated tobacco. The current patchwork of national tax regimes creates "severe distortion" in the EU single market, according to the European Parliament.

After months of negotiations, the Cypriot presidency circulated a compromise that would have established EU-wide minimum excise rates for nicotine pouches. Sweden blocked it. "Unfortunately, despite our efforts in recent months, it is not possible to reach an agreement," a Cypriot spokesperson said.

The proposal was dropped from the agenda of the EU finance ministers' meeting on June 12.

Why Sweden said no

Swedish Finance Minister Elisabeth Svantesson of the Moderate Party celebrated the outcome on X: "We're now stopping the EU from raising taxes on snus!" She referred to nicotine pouches as "white snus," the common Swedish term.

Sweden's argument: smoke-free alternatives should be treated differently from cigarettes, and member states must retain control over national tax policy. Sweden has the lowest smoking rate in the EU — a fact Swedish industry representatives say regulators in Brussels should study more closely.

"It's of course positive that Sweden continues to stand up for the Swedish model and for the products that have helped us achieve the lowest smoking rate in the EU," said Patrik Strömer, Secretary General of the Association of Swedish Snus Manufacturers. "At the same time, this is not over."

What the European Parliament proposed

While member states debated in the Council, the European Parliament's Economic and Monetary Affairs Committee passed its own set of recommendations on June 3, 2026. Czech MEP Tomáš Kubín, the rapporteur, called for "differentiated treatment of products according to their specificities, patterns of use, and risk profiles" — essentially, lower taxes for less harmful products.

The full Parliament voted on the recommendations during the June 15-18 Strasbourg plenary. The Parliament's role is consultative; the Council has the final say on tax matters.

What this means for pouch prices

For now, nothing changes. Nicotine pouches remain outside EU-wide excise rules, and each member state sets its own tax (or doesn't tax pouches at all). The patchwork stays.

But this is a pause, not a resolution. The Commission continues to push for the TED revision, and several member states support common minimum taxes on new nicotine products. Ireland took over the rotating EU Council presidency in July, and the issue is expected to return to the negotiating table.

If a future agreement sets the rate near the proposed SEK 1,045/kg, pouch prices would rise across the EU — particularly in low-tax markets. The question is whether Ireland's presidency produces a compromise Sweden can accept, or whether the deadlock continues.

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SOURCES:

• Snusforumet: Sweden blocks EU compromise on nicotine pouch tax hike (5 June 2026)
• European Parliament: Recommendations for new EU tax rates on tobacco (June 2026)
• European Commission, Taxation and Customs Union: Revision of the Tobacco Taxation Directive (proposal) (16 July 2025)
• EUR-Lex: Opinion of the European Economic and Social Committee on the TED recast

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Compare nicotine pouch prices across EU retailers at PouchFinder.