Home News Consumer groups urge Sweden to veto EU nicotine tax proposal

Consumer groups urge Sweden to veto EU nicotine tax proposal

February 21, 2026

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Consumer organisations representing vape and nicotine pouch users across Europe have urged the Swedish government to reject a proposed EU compromise on harmonised nicotine taxation, warning it could undermine harm reduction and drive consumers back to smoking.

In an open letter signed by nine consumer-driven groups, including the World Vapers’ Alliance, EU4Snus and the Consumer Choice Centre, the organisations called on Sweden to “say no to the compromise now being discussed in the Council” and “use the right of veto” if necessary.

Impact on smoke-free alternatives

The groups said many of their members rely on e-cigarettes and nicotine pouches to remain smoke-free and warned that higher taxes on these products would reduce the financial incentive to switch from cigarettes.

“If the price difference between cigarettes and smokeless alternatives is reduced, an important incentive for many to remain smoke-free is also reduced,” the letter states.

They also criticised language in the compromise text referring to “avoiding taxation that leads consumers to switch from cigarettes to other products”, arguing this would actively discourage smokers from moving to lower-risk alternatives.

Threat to Sweden’s model

The signatories highlighted Sweden’s long-standing policy of taxing nicotine products according to their risk, which they said has helped deliver the lowest smoking rate and tobacco-related mortality in the EU.

They warned that forcing Sweden to abandon this model would send a signal to other member states that differentiated taxation based on harm was no longer possible.

“If Sweden is forced to abandon its model, it will send a clear signal to other Member States that risk-based taxation is no longer possible in the EU,” the letter said.

Concerns over pouch and vape tax levels

Under the compromise proposal, nicotine pouches would face a minimum tax of around SEK 1,200 per kilogramme, which the groups described as “a high level that does not take reasonable account of the difference in risk between cigarettes and smokeless products”.

They also criticised plans for a flat €0.30 per millilitre tax on e-liquid, including nicotine-free products, saying this would disproportionately impact consumers using lower-strength or zero-nicotine liquids.

“Imposing the same tax on nicotine-free products as on those containing nicotine seems not only difficult to justify, but completely illogical,” the letter said.

The organisations warned the measures could have unintended public health consequences, including increased smoking rates and growth in illicit markets.

They argued that evidence from multiple countries shows smoking tends to increase when safer alternatives become less affordable, particularly among younger consumers and lower-income groups.

Call for Sweden to take stand

The groups urged Sweden to defend harm-reduction principles during ongoing negotiations on the EU Tobacco Excise Directive revision.

Specifically, they called on the government to reject the compromise, ensure tax policy clearly distinguishes between combustible and smoke-free products, and safeguard member states’ ability to use taxation to reduce smoking.

“Sweden’s position does not only affect Swedish consumers. It affects us all,” the letter concluded.

Kiran Paul
By Kiran Paul
With a background that spans both the agility of startup environments and the established presence of Asian Media Group, Kiran tries to bring a well-rounded perspective to his work. His career as a journalist began at a dynamic news startup, where he honed his reporting and storytelling skills for five years, gaining valuable experience in a fast-paced and evolving media landscape. Since 2018, he has been contributing to Asian Trader, where a standout feature of his work has been his in-depth interviews with award-winning retailers, which he transforms into insightful profiles that appear in each issue. Since 2021, he has also been at the helm of the sister title, Vape Business.