The consumer organization Consumer Choice Center (CCC) believes that introducing a minimum tax on harm-reducing nicotine products such as nicotine pouches and e-cigarettes sends the wrong signal. After all, this would counteract harm reduction efforts, which could help lower smoking rates more rapidly.
"These tax increases are an additional burden on consumers who are already suffering from the effects of the current trade war. [...] Instead of facilitating access to less harmful alternatives, the EU is making these products more expensive and thereby undermining harm reduction efforts."
– said Fred Roeder, Managing Director of the Consumer Choice Center.
>> Read more: Addiction researcher supports EU-wide legalization of Swedish oral tobacco
Tobacco Tax Could Increase by Up to 30 Percent
According to a recent report by Bild, the tobacco tax could increase by as much as 30 percent as early as next year. But that’s not all – there is also talk of introducing, for the first time, a minimum tax on so-called novel products, particularly nicotine pouches.
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Harm-reducing products such as nicotine pouches are still not included in the EU Tobacco Directive, which explains the regional differences in sales regulations – especially in Germany. – © Image: AdobeStock |
The planned measures aim to counteract tobacco consumption, according to official statements. However, these actions may also have unintended negative consequences, as noted by Michael von Foerster, Managing Director of the Tobacco Association VdR, in a statement to Bild. He emphasized: “The Commission’s supposed plans only produce losers.”
On the one hand, the state would have to accept billions in lost tax revenue and a flourishing black market; on the other, public health would suffer significantly. Consumers would also be confronted with drastic price increases, said Foerster.
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How Excessive Tobacco Taxes Fuel the Black Market
Massive increases in tobacco taxes fuel the black market, leading to more cigarettes being sold outside state regulation – France is a prime example. There, tobacco taxes were significantly raised and, according to Bild citing the KPMG Report 2024, the black market share for cigarettes is now 33 percent.
Minimum Taxation Could Undermine the Goal of Reducing Smoking Rates
Roeder also believes that the Commission's plans contradict the political goal of a smoke-free generation by 2040:
"Instead of making it easier for smokers to switch to less harmful alternatives, higher prices deter them. This undermines the goal of reducing smoking rates."
Recently, the importance of the topic harm reduction in tobacco use was emphasized at the 7th expert conference "Tobacco Harm Reduction – Promising Smoking Cessation Strategies" at Charité in Berlin. The fact that harm-reducing nicotine products like nicotine pouches play a key role in this effort now seems to be largely overlooked in the new initiatives.
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