Spain is requesting a moderation of the tax hike on roll-your-own tobacco during the reform negotiations of the EU tobacco tax directive, while Sweden continues to block the agreement due to the taxation of nicotine pouches.
European Union finance ministers are negotiating the revision of the Tobacco Excise Directive (TED), which requires a unanimous decision. Sweden previously signaled its opposition to the proposed mandatory minimum tax on nicotine pouches, and now Spain has also raised objections, demanding a more moderate tax increase on fine-cut tobacco.
Madrid fears that a sudden price hike would worsen the price disparity at the border with France, which would jeopardize the more than 6.5 billion euros in annual tobacco revenue flowing into the budget. The current compromise draft aims for a minimum of 120 euros/kilogram by 2028 and 160 euros/kilogram by 2030, compared to the current Spanish tax level of 112.5 euros.
The draft affects both traditional tobacco products and alternative products, such as e-liquids and nicotine pouches, although Spain already taxes these under national jurisdiction. The agreement is further complicated by the reservations of more than ten member states, as well as upcoming political processes in Spain and Sweden.
In short
- EU finance ministers are discussing the revision of the Tobacco Excise Directive, which requires unanimity.
- Sweden has raised objections regarding the taxation of nicotine pouches, while Spain has raised objections regarding the excessive taxation of fine-cut tobacco.
- Madrid fears for its French border revenues and domestic tax income due to the rapid increase in tax minimums.
- The compromise draft includes staggered minimums and numerous exceptions for member states to facilitate an agreement.
Source: VapingPost FR (fr.vapingpost.com)
The summary was created by artificial intelligence based on the original article.