EU Presidency Proposes Lower Excise Rates for Alternative Nicotine Products
The latest text from the Cyprus Presidency of the Council of the European Union signals a significant effort to strike a compromise in negotiations to revise the EU Tobacco Taxation Directive (TTD), specifically through adjustments to excise taxes for heated tobacco products (HTPs) and nicotine pouches.
The latest draft, dated 17th April and reviewed by ECigIntelligence, reduced the minimum excise duty rates for HTPs to €280 per kg (from €300) and to €95 per 1,000 pieces (from €100) as a compromise, since this was requested by some member states. For nicotine pouches, the tax rate dropped to €95 per kg, compared with the €107 per kg suggested in the presidency’s first draft and the European Commission’s initial proposal of €143 per kg, since this constituted a major concern for some member states.
National exemptions and implementation extensions for member states
A block of five countries (Bulgaria, Croatia, Cyprus, Greece and Luxembourg) secured a significant extension until 2033 to reach the EU’s minimum excise duty rates on cigarettes. Hungary obtained a specific exemption allowing for a lower excise level than the standard requirements. Hungary’s retail prices are tied to a mandatory minimum profit margin; since the margin automatically increases the baseline price, the exemption ensures that the total fiscal burden remains proportionate and does not lead to excessive price increases beyond the minimum requirements.
Regarding oral tobacco, the draft reaffirms Sweden’s exemption from the EU-wide ban on snus, continuing to clarify that harmonising excise duties for these products is “not necessary” for the functioning of the internal market, provided that Stockholm prevents the product from reaching other member states.
Historical draft evolution and e-liquid taxes
In the previous draft on 18th March, the presidency introduced a new transitional period for nicotine pouches, setting a reduced rate (€30 per kg or 10% of the retail price) for the two-year period of 2028 to 2029. The same text envisaged an increase in the minimum tax on the retail price of e-liquids from 20% to 30% starting in 2032, while abolishing the possibility for member states to tax e-liquids based on specific nicotine concentrations.
The presidency’s first proposal had already introduced a 50% increase in the EU minimum excise duty on e-cigarette liquids, bringing it to €0.30 per ml, and excluded the use of delegated acts for future rate adjustments, thereby restoring fiscal sovereignty to national capitals.
21 April 2026
Written by Antonia Di Lorenzo, Newsdesk Editor/EU Lead Reporter, ECigIntelligence - Part of Tamarind Intelligence
