The European Union is considering raising taxes on various products, including e-cigarettes.
This Friday, finance ministers from EU member states will discuss a proposal from the EU Commission to revise the 2014 tobacco directive.
EU Commissioner for taxation Wopke Hoekstra emphasizes the necessity of this update.
“Europe faces a significant issue with tobacco,” says Wopke Hoekstra.
According to the World Health Organization (WHO), Europe is once again the leading region globally in tobacco consumption.
“Tobacco currently kills one in two Europeans. E-cigarettes, in particular, pose a major issue as they serve as a tool for the tobacco industry, targeting youth and making them more susceptible to tobacco products,” Wopke Hoekstra remarks.
If the EU Commission’s proposal is approved, it will lead to increased minimum taxes throughout the EU.
This change will result in higher prices for tobacco products across the EU and reduce price disparities between countries to curb cross-border trade.
Additionally, the directive will broaden its scope to include new products like e-cigarettes, heated tobacco, and nicotine pouches.
“The current legislative coverage is too limited, requiring expansion,” Wopke Hoekstra states.
The EU Commission also estimates that EU countries collectively lose out on 13 billion euros annually in tax revenue, which is nearly 97 billion kroner.
The EU Commission submitted its proposal for revising the directive on July 16 this year, and it is now up to the Danish EU presidency to facilitate ongoing negotiations, according to Finance Minister Stephanie Lose (V).
“It’s beneficial to have the proposal under consideration. Revising the directive is important, and I look forward to discussing the EU Commission’s proposal with my colleagues,” Stephanie Lose stated as she entered the meeting.
However, not all member states are fully supportive of the EU Commission’s proposal.
Sweden’s Minister of Finance, Elisabeth Svantesson, argues that the proposal for minimum taxes unfairly targets the popular Swedish snus.
“Some of my colleagues believe that snus is more dangerous than cigarettes, which I must clarify is not the case,” she explains.
“In Sweden, we tax according to the level of risk, hence we impose higher taxes on cigarettes than on snus,” Elisabeth Svantesson continues.
She insists that the proposed tax increase on snus by the EU Commission “will not take place.”
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