Swedish Finance Minister Elisabeth Svantesson called an EU proposal to use revenue from higher tobacco taxes to help fund the bloc’s next long-term budget “completely unacceptable,” saying the proposal threatens the sale of nicotine pouches and undermines national tax sovereignty. Sweden has positioned itself as a model for tobacco harm reduction, citing a smoking rate of just 5% and a decline in smoking-related cancers.
The proposal, referenced in a document from Germany’s International Affairs Liaison Office in Brussels and submitted to the German parliament, suggests new EU revenue sources for the 2028–2034 budget could include levies on electronic waste and tobacco. Though not yet officially confirmed by the European Commission, the idea adds to growing pressure from at least 15 EU member states to raise excise duties on tobacco products.
Euractiv reported the European Commission is considering a 139% tax hike on cigarettes, along with steeper levies on alternative products such as e-cigarettes, nicotine pouches, and heated tobacco. Sweden now joins Italy, Greece, Romania, and Bulgaria in opposing the move, primarily to defend nicotine pouches.
In a post on X, Svantesson said the proposal would result in “a very significant tax increase on white snus,” and that the Commission wants the tax revenue “to go to the EU and not to Sweden.”