Denmark Proposes Sharper Tax Hike: Heated Tobacco Up 132%, Nicotine Pouches Facing 1,000% Increase

Dec.04

According to foreign media, the European Union will examine a strengthened Danish proposal to amend the Tobacco Excise Directive. The plan introduces sharper tax increases on heated tobacco, nicotine pouches and other products. Despite overwhelming public opposition in earlier consultations, the revision continues to move forward, raising concerns about supply chain impacts and potential growth in illicit trade.

Key Points

EU to review Denmark’s stricter tax proposal.
Heated tobacco tax up 132%; nicotine pouches up 1,000%.
Member states warn of illicit trade risk and supply chain impact.

2Firsts, 4 December 2025 — According to foreign media, the EU will discuss Denmark’s tightened version of the Tobacco Excise Directive (TED) on 4 December. Compared with the Commission’s July 2025 draft, the Danish text imposes significantly higher taxes across all categories.

Significant Tax Increases for Heated Tobacco and Nicotine Pouches

The Danish text foresees a 132% rise for heated tobacco compared with the earlier draft and up to a 1,000% increase for nicotine pouches.

Innovative smokeless products would face a minimum tax of EUR 360 per kg, above the EUR 215 per kg applied to traditional smokeless tobacco. Despite 92% opposition in public consultation, the revision continues forward.

Member States Warn of Market Distortion and Supply Chain Impact

Countries including Italy, Greece, Sweden and Bulgaria oppose channeling additional revenue to the EU rather than national governments, with estimates of up to EUR 15 billion.

The proposal could strain the supply chain, affect innovation investment and push consumers toward illicit markets. Experts caution that treating reduced-risk products like combustibles may hinder harm-reduction innovation.

References:

[1] Cigarettes, increases of up to EUR 2 per pack under the Danish proposal

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