The European Commission’s ambitious plan to raise tobacco taxes across the EU has provoked mounting resistance from member states. The latest one is Sweden, with their traditional oral tobacco product, snus, now set to contribute to the bloc’s next long-term budget. The problem? Snus is outlawed in 26 member states—but that doesn’t prevent the bloc from taxing it, apparently.
Under the Commission’s 2028–2034 budget proposal, 15% of national tobacco tax revenues would be redirected to the EU through a measure known as TEDOR. Conservative MEPs Charlie Weimers, Dick Erixon, and Beatrice Timgren (Sweden Democrats) asked Budget Commissioner Piotr Serafin whether revenues from snus would be exempt. Serafin responded that “there would be no exceptions for any tobacco products,” citing the principle of equal treatment of member states.
Snus, banned across the EU since Sweden’s accession in 1995, enjoys a permanent exemption under Stockholm’s membership deal. The inclusion of snus in TEDOR has fueled opposition in Sweden, where Finance Minister Elisabeth Svantesson described the plan as “completely unacceptable.”
If a product banned in 26 member states can still be taxed by the EU, maybe the bloc could extend taxation to other products that it has also outlawed? How about another staple of Swedish culture, fermented herring? Or foie gras, illegal except in Hungary, France, and Belgium? Or, to go a step further—why not go after the booming cocaine and heroin trade, if illegal status does not prevent a product from being taxed?
The Commission’s tax initiative is part of a broader push to generate an estimated €11.2 billion in annual EU revenue through tobacco levies. In June, the Commission proposed raising cigarette taxes as a fiscal measure to curb consumption, framing higher prices as a “price signal” that “smoking is indeed harmful and should be combated by all means.” Of course, if smokers actually quit because of the higher price, the tax revenue would not materialize.
By July, the plan had expanded—as tax plans tend to do—to include a 139% increase in cigarette taxes, a 258% increase on rolling tobacco, a 1,000% rise for cigars and cigarillos, and the first-time inclusion of next-generation products (NGPs) like heated tobacco, nicotine pouches, and e-liquids under central taxation.
In August, Portugal became the latest country to revolt against the Commission’s proposals, joining Greece, Italy, and Romania in warning that the plan could do more harm than good. Lisbon expressed “strong concerns” about potential revenue losses from booming black-market trade. According to Portuguese estimates, the plan could cost the country up to €1.5 billion in lost tax revenue.
Cyril Lalo, Head of EU Engagement at Imperial Brands, echoed these concerns, saying, “The Commission’s approach overlooks real-world evidence: high excise rates have shown little success in reducing smoking prevalence, fueled illicit trade, negatively impacted [tax] revenues, and impoverished EU consumers.”
Since both the EU budget and the Tobacco Excise Duty (TED) revision require unanimous member state approval, Brussels faces a difficult battle over the next two years. With Sweden, Portugal, Greece, Italy, and Romania already opposing the plan, additional objections from countries such as Bulgaria, Croatia, Luxembourg, Slovenia, Slovakia, Spain, and Lithuania could further complicate the Commission’s efforts to implement its sweeping tax strategy.
