Sweden emerges as the main holdout over the proposed EU tobacco tax changes, particularly on nicotine pouches. Photo credit: Tage Olsin, CC2.0.
The European Union has delayed a key vote on proposed higher tobacco and nicotine taxes until November, giving Sweden additional time to form a new government following its September 13 election.
The Irish presidency of the Council of the EU confirmed that the vote will move from October to the November meeting of EU finance ministers. The presidency said it would “continue[s] to engage bilaterally with the aim of securing unanimous political agreement at the November ECOFIN” meeting.
The original plan called for ministers to vote on the latest text on October 9, shortly after Sweden’s new parliament convenes. Four EU diplomats told Politico that the delay would give Sweden’s next government more time to consider the proposal and potentially resolve the current stalemate.
The proposed revision to the EU Tobacco Taxation Directive would raise minimum taxes on cigarettes and introduce minimum excise rates for newer products, including e-cigarettes, heated tobacco products, and nicotine pouches. The European Commission presented its proposal in July 2025.
Sweden has emerged as the principal holdout against the proposal, particularly over nicotine pouches. Swedish politicians across the political spectrum have campaigned against higher EU taxes on the products, which have become an established part of the country’s nicotine market.
The Commission’s original proposal would tax nicotine pouches at either 25% of retail price or €71.50 ($83.66) per kilogram. Sweden currently applies a levy of €18.36 ($21.48) per kilogram, according to Politico.
Sweden has argued that its lower tax rate should serve as a model across the EU, maintaining that nicotine pouches have contributed to the country’s decline in smoking. Daily smoking among Swedes fell from just over 30% in 1980 to 5% in 2024, according to figures cited in the report.
Finance minister Elisabeth Svantesson wrote in June: “Other countries do not get to decide over our snus.”
The Council requires unanimity on tax legislation, meaning Sweden can prevent the proposal from advancing without its support. One senior EU government official told Politico: “If Sweden’s minister says that it doesn’t have a mandate to approve the legislation [in October], then it’s over.”
EU government officials were due to meet September 14 to discuss the latest compromise proposal. Earlier Council documents show that member states have been examining successive compromise texts on the Tobacco Taxation Directive during 2026.
The Commission’s proposal would extend the existing tobacco excise framework to products that currently fall outside its scope, including nicotine pouches, as part of a broader overhaul of EU tobacco taxation rules.