The European Commission wants to bring nicotine pouches into an EU-wide excise system for the first time. Now the proposal is caught up in a much bigger argument: how the EU will pay for its next long-term budget.

That matters because tax decisions need all 27 member states to agree. A higher minimum tax is already difficult for countries to accept. Asking them to send part of the money to Brussels makes the politics harder.

Nothing changes for shoppers yet. The proposal is still being negotiated, and there is no EU-wide pouch tax rate on the shelf today.

What the Commission has proposed

The Commission tabled a rewrite of the Tobacco Taxation Directive in July 2025. Its argument is simple: the current rules were written before nicotine pouches, modern e-cigarettes and newer heated-tobacco products became major parts of the market.

The draft would:

• raise the EU minimum duty on cigarettes by 139%;
• create EU-wide minimum duties for e-cigarettes, heated tobacco and nicotine pouches; and
• extend the tobacco tracking system to raw tobacco.

The proposal does not yet set a final pouch tax rate. The Commission has discussed 2028 as a possible start date, with a four-year transition for the largest increases.

For now, each member state still decides how to tax nicotine pouches. Some impose a duty. Others do not.

Why the EU budget is involved

The tax proposal is now being discussed alongside the Commission's plan for the EU's own resources for 2028–2034. That plan includes a proposed Tobacco Excise Duty Own Resource, which would send part of national tobacco-tax receipts to the EU budget.

Legally, the two proposals are separate. Politically, they are difficult to separate. Governments that object to a higher tax floor may be even less willing to support it if some of the money leaves their national budget.

The European Parliament has also asked for at least €60 billion a year in new EU revenue before it backs the next long-term budget. Tobacco receipts are one possible source.

Both decisions require unanimity. The own-resources plan would also need ratification by all 27 national parliaments. Even if governments reach a deal, implementation would take time.

Parliament has already shown the split

The European Parliament can give an opinion on the tax proposal, but the Council of the EU has the final say. Tax matters require unanimity in the Council.

MEPs failed to adopt a formal non-binding opinion in June 2026 after rejecting a compromise report. The disagreement is familiar: some lawmakers see higher prices as a way to reduce consumption, while others worry that fast tax increases would hit lower-income consumers and feed illicit trade.

That leaves the decisive negotiations with national governments.

Which countries are pushing back

Countries with higher tax rates generally want a common floor. Their concern is that cheap products from lower-tax countries can cross borders and undercut domestic prices.

Lower-tax countries, including Bulgaria, Romania, Greece and Poland, have argued that a rapid increase could push some consumers toward illicit sellers and reduce tax revenue.

Sweden has taken a different position on nicotine pouches. It has argued that smoke-free products should not automatically be taxed in the same way as cigarettes and that national governments should retain room to set their own policy. Sweden also points to its comparatively low smoking rate.

What this could mean for prices

There is no immediate price change. The proposal is not law, and no EU-wide pouch rate has been agreed.

If member states eventually approve it, prices would probably rise in countries that currently have low or no pouch taxes. The size of the increase would depend on the final rate, the transition period and how each country applies the rules.

The harder question is political. The Commission wants a common tax framework. National governments still have to decide whether they are willing to give up part of the revenue and, in some cases, part of their control over nicotine policy.

That is why the budget dispute matters. The pouch tax proposal has not disappeared, but it is now tied to a much wider negotiation that could take years.

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SOURCES:

• Euronews: Can the EU stop smoking and vaping? Not quite, but it can raise taxes (19 August 2026)
• European Pulse: EU weighs sweeping tobacco tax overhaul to curb nicotine use (17 August 2026)
• The European Post: Europe's Tobacco Tax Overhaul Now Doubles as an EU Budget Fix (22 August 2026)
• Tobacco Journal International: EU weighs major tobacco tax overhaul (18 August 2026)
• Vapoteurs.net: European Union: Minimum excise duties on vaping and nicotine pouches considered for the first time (23 August 2026)
• European Commission, Taxation and Customs Union: Revision of the Tobacco Taxation Directive (proposal) (16 July 2025)

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Compare nicotine pouch prices across EU retailers at PouchFinder.