EU finance ministers failed to agree on new minimum taxes for tobacco and nicotine. While Sweden finally accepted a nicotine pouch tax compromise, Malta ultimately blocked the entire package, leaving the question of an EU minimum tax on pouches unresolved.

The Irish presidency hoped to wrap up the revision of the Tobacco Excise Directive (TED) at the 9 November meeting of EU finance ministers (Ecofin) in Brussels.

The proposal would introduce an EU-wide minimum tax on nicotine pouches.

“It’s good that a serious proposal was finally put on the table. Unfortunately, some member states are pursuing bad regulation,” says Patrik Strömer, Secretary General of the Association of Swedish Snus Manufacturers.

From SEK 1,500 to no rate at all

The European Commission’s original proposal from July 2025 would have set a minimum tax equivalent to around SEK 1,500 (€143) per kilogram. Sweden currently taxes nicotine pouches at SEK 209 per kilogram.

In June, Sweden blocked an earlier compromise, but was ready to accept an offer tabled at the meeting calling for rates roughly on par with current Swedish levels.

State Secretary Johanna Lybeck Lilja compared the importance of snus to Sweden with that of wine to the French, Italians and Spanish.

“I cannot stress enough how important this is for Swedes – and therefore also for the Riksdag,” she said, referring to Sweden’s parliament, according to Swedish news agency TT.

Finland, by contrast, went on the attack. Finance Minister Riikka Purra of the Finns Party argued that cheap pouches from neighbouring Sweden were increasingly ending up in illegal channels targeting young people, Svenska Yle reported.

Yet evidence suggests illicit tobacco trade is largest in the countries that have banned nicotine pouches.

When Estonia and Malta also said no, Ireland tabled a new offer: the principle of a minimum tax on nicotine pouches would be written into the directive, but the rate itself would be set later.

Sweden, Finland, and Estonia eventually accepted.

Malta blocks the whole package

In the end, however, Malta still said no. 

Finance Minister Clyde Caruana argued that the proposed minimum rates remain well above Malta’s current levels, and he objected to rates being raised automatically.

Because tax matters require unanimity in the EU, the proposal fell despite the backing of 26 of 27 member states.

“I regret that the Council could not come to a final agreement on the revision of the tobacco tax directive today,” said Irish Finance Minister Simon Harris following the meeting

Harris wants to try again in December at the next regular Ecofin meeting.

What happens to the nicotine pouch tax now?

For Swedish consumers, nothing changes for now. 

But if the package is adopted, an EU-wide minimum tax on nicotine pouches will be written into law, with the rate left open for later negotiation.

The question of how heavily pouches should be taxed in the EU remains unanswered and has been postponed yet again. It also remains unclear who will speak for Sweden when it returns to the table.

The country still has no new government after September’s election, and a caretaker government has been negotiating in Brussels. Whether a new government takes office before the December meeting, and what position it would take in the negotiations, remains unclear.