German tobacco industry leaders gathered at InterTabac to criticize the EU tax reform proposal: high taxes will kill the nicotine pouch industry and hurt fiscal revenue

Sep.19
At the InterTabac opening press conference, German tobacco industry leaders criticized the EU’s proposed tax reform, warning that steep hikes could devastate the nicotine pouch sector, reduce excise revenue, and fuel illicit trade. They called on German policymakers to oppose the changes at the European level.
German tobacco industry leaders gathered at InterTabac to criticize the EU tax reform proposal: high taxes will kill the nicotine pouch industry and hurt fiscal revenue
Representatives of the German tobacco industry blasted the European Commission's tobacco tax proposal during the InterTabac opening conference. |Photo: Taco Tuinstra

 

2Firsts, September 18, 2025, Dortmund, Germany – The InterTabac and InterSupply exhibitions opened in Dortmund, Germany on September 18th, raising concerns within the industry about the serious issues raised by the European tobacco tax reform. In July 2025, the European Commission proposed revising existing tobacco tax rules, significantly increasing the minimum tax rate across the EU.

 

At a press conference opening the event in Dortmund, leading representatives of the German tobacco industry expressed reservations about the proposed tax rate, arguing that it was far higher than justified by changes in consumer incomes and economic evidence.

 

Unintended Consequences

 

Speakers predicted a series of negative consequences from the proposal, including a decrease in excise tax revenue and an increase in illicit trade, particularly in economically weaker EU member states. Regarding nicotine pouches, industry representatives at the conference stated that the tax increase could directly render the entire industry unviable.

 

Michael von Foerster, CEO of the German Cigarette and Tobacco Industry Association, called the move "a money-making scheme disguised as coordinating EU fiscal policy." He noted that such a move would not protect health or increase state tax revenue, but would instead disrupt the legal market and stimulate illegal sales.

 

His sentiments were echoed by Jan Muecke, CEO of the German Tobacco Industry and Next Generation Products Association. Muecke noted that Germany's "gradual, predictable tax increase strategy" has been effective, achieving steady growth in tobacco tax revenue even amid stagnant cigarette sales.

 

A Bad Example

 

Muecke contrasted Germany's situation with France and the Netherlands, both of which have implemented sudden and significant tax increases on tobacco products. He noted that in France, the price of cigarettes increased from €8.60 in 2019 to €12.50 in 2025, leading to an "explosive growth" in the illegal market. According to Muecke, the French government lost approximately €9 billion in tobacco tax revenue as a result.

 

After a similarly large tax increase in the Netherlands, tobacco tax revenue also fell by 24%.

 

"The message is clear," said Muck. "High taxes don't make people quit smoking; they simply encourage them to buy products from other sources."

 

Political Support

 

Bodo Mehrlein, CEO of the German Cigar Industry Association, noted that the proposal would increase taxes on some cigar products by more than 1,000%. He said the policy runs counter to efforts to improve the competitiveness of European companies and puts enormous pressure on tobacco industry owners.

 

Despite industry concerns, attendees found hope in feedback from German politicians. Some politicians said they would oppose changes to the current tax system, which is considered effective in Germany.

 

"Germany's tobacco tax system is correct," said Muck. "We hope it will remain so, and we hope the German government can exert influence in Brussels."

 

For more on-the-ground coverage, visit the 2Firsts Inter Tabac Special Section.

 

Reuters: FDA relaxes requirements for nicotine pouch pilot program, cancels special research on some products
Reuters: FDA relaxes requirements for nicotine pouch pilot program, cancels special research on some products
US FDA meeting minutes: Under Trump, a new pilot eases nicotine pouch rules—cuts product-specific research (uses generic data), shortens reviews, boosts communication. It’s the FDA’s first clear softer stance on smoking alternatives. The pilot may benefit Philip Morris (Zyn), Altria (On!), BAT (Velo) but sparks debate: FDA says pouches are low-risk (no youth surge), while ex-officials/academics cite missing research (hurts health checks, risks hidden youth use). Firms note costly research remain
Sep.19 by 2FIRSTS.ai
Altria Director George Muñoz to Retire After 2026 Shareholder Meeting;
Altria Director George Muñoz to Retire After 2026 Shareholder Meeting;
Altria director George Muñoz plans to retire post-2026 annual meeting, not seeking re-election. Annual meeting expected on May 14.
Oct.15 by 2FIRSTS.ai
Thai police seize over 50,000 illegal e-cigarettes worth more than 10 million baht, main suspect arrested in Bangkok
Thai police seize over 50,000 illegal e-cigarettes worth more than 10 million baht, main suspect arrested in Bangkok
Thai police cracked an illegal e-cigarette smuggling case, seized 50,000 items worth more than 10 million baht (over 310,000 US dollars), arrested several suspects, and cracked down on a cross-border smuggling network.
Sep.23 by 2FIRSTS.ai
Special Report | After the Shortage: How the U.S. Vape Market Is Rebuilding Itself
Special Report | After the Shortage: How the U.S. Vape Market Is Rebuilding Itself
After a wave of regulatory crackdowns, the U.S. vaping market is undergoing a deep reshuffle — shortages sparked frenzy, and resupply triggered elimination. Through interviews with industry insiders from both China and the United States, 2Firsts reveals how the American market is rebuilding itself amid turbulence.
Nov.12
Tasmania, Australia Will Introduce New Laws Targeting Illegal Vape and Tobacco Retailers
Tasmania, Australia Will Introduce New Laws Targeting Illegal Vape and Tobacco Retailers
Tasmania will introduce new laws next year to tackle the illegal trade in tobacco and vapes. The legislation will strengthen penalties, allow inspectors to issue on-the-spot fines and shut down non-compliant retailers, and enhance coordination between police and health authorities.
Nov.11 by 2FIRSTS.ai
Smoore: Profit Growth Gradually Improving, Fourth Quarter Shows Promise — A 2Firsts Reader Submission
Smoore: Profit Growth Gradually Improving, Fourth Quarter Shows Promise — A 2Firsts Reader Submission
Smoore released its financial results for the third quarter of 2025.A reader submitted to 2Firsts, noting that Smoore’s declining profit margin was mainly due to the substantial upfront investment in its new heated tobacco products, the relatively low margins of vaping devices, and price reductions resulting from product iterations in the European atomization market.as product structure adjustments near completion, the company’s profit growth is expected to further rebound in the fourth quart.
Oct.13