According to foreign media reports. The EU will discuss on December 4th the revised version of the “Tobacco Consumption Tax Directive” proposed by Denmark. This proposal further increases the tax burden on all tobacco and nicotine products. The tax on heated cigarettes will increase by 132% compared to the previous draft, and the tax rate on nicotine pouches may rise to 1000%. Several countries have previously opposed the EU’s move to centralise new taxes, warning that this may disrupt supply chains and stimulate illegal trade.
Key Points Summary
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The EU will review the stricter tobacco tax reform proposal submitted by Denmark.
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Heated cigarette taxes are planned to increase by 132%, and nicotine pouch taxes may rise by up to 1000%.
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In the public consultation, 92% opposed a comprehensive tax hike.
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New tax rates for innovative smoke-free products are higher than some traditional smoke-free tobacco categories.
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Several countries worry that centralising new taxes within the EU could impact market stability.
EU Member States to Discuss Stricter TED Revision
December 4, 2025 — According to Ilsole24ore, EU member states will discuss Denmark’s revised draft of the strengthened Tobacco Consumption Tax Directive (TED). This new version builds on the European Commission’s 2025 draft and further raises tax rates on cigarettes, heated tobacco products, smokeless tobacco, and nicotine pouches.
Sharp Increases in Taxes on Heated Tobacco and Nicotine Pouches
The revised proposal significantly increases the tax burden on tobacco and nicotine products. According to the report, taxes on heated cigarettes will rise by 132%, while taxes on nicotine pouches may increase by up to 1000%.
In addition, the minimum tax rate for innovative smoke-free products will be set at 360 euros per kilogram, surpassing the 215 euros per kilogram applied to traditional smoke-free tobacco.
Public Consultation Shows Strong Opposition to Broad Tax Hikes
During the earlier public consultation, 92% of 17,000 participants opposed the comprehensive tax increase. Respondents cited concerns over job losses, higher financial burdens for consumers, and heightened risks of smuggling. Despite the strong opposition, the legislative revision process continues.
Concerns Over EU Centralisation of New Tax Revenue
Several countries—including Italy, Greece, Sweden, and Bulgaria—have consistently opposed allowing the EU to centrally manage the new tax revenues. Estimates suggest that these revenues could reach 15 billion euros.
Potential Impact on Market, Supply Chain, and Innovation
Reports warn that excessively high taxes may strain the tobacco supply chain, reduce incentives for innovation, and affect employment. There is also concern that consumers may be pushed toward illegal markets. Some experts argue that treating low-risk, smoke-free products the same as combustible tobacco could hinder ongoing efforts to reduce harm through innovation.
