EU ministers fail to reach agreement on tobacco taxation

Finance ministers did not agree on tobacco taxation reform at ECOFIN on November 9. According to the Irish presidency, 26 states supported the package, while Malta was not yet ready to accept it. The proposed compromise for nicotine pouches separates their inclusion in the fiscal framework from setting the level of taxation. Negotiations are expected to resume in December.

Finance ministers of the European Union did not reach an agreement on the tobacco taxation package at the ECOFIN meeting on November 9, 2026. European Commissioner for Economy Valdis Dombrovskis confirmed the lack of agreement, following discussions in which the Irish presidency tried to bring the states’ positions closer on the treatment of new nicotine products.

In brief

EU finance ministers did not reach an agreement on November 9. Simon Harris said that 26 of the 27 states were ready to support the package, but Malta was not yet in that position. The reform requires unanimity.

The Irish presidency proposed accepting the inclusion of nicotine pouches in the European fiscal framework, with the level of taxation to be determined later. The compromise did not become a Council agreement.

The Commission and the Irish presidency support updating the rules for new products and protecting young people. Separately, SANT is calling for increases in and the convergence of minimum excise duty levels; the plenary vote on its report is scheduled for November 12.

Harris intends to resume negotiations in December, with the Commission’s support. This is a negotiating objective, not the date when new taxes will apply.

Irish Finance Minister Simon Harris said at the press conference that 26 of the 27 member states were ready to support the package, but Malta was not yet in that position. The tax file requires unanimity, so the support of a majority of states was not sufficient for an agreement.

The compromise explained by Harris for nicotine pouches involved the states first accepting their inclusion in the European fiscal framework, with the level of taxation to be established later. The minister presented the solution as a way to obtain unanimity and insisted on keeping the package as a whole. The formula remained a compromise proposal, without becoming a Council agreement.

The Commission considers that the current rules are outdated and need to be adapted to market developments in order to support European public health objectives. Harris emphasized the inclusion of electronic cigarettes and nicotine pouches, which he presents as a measure to protect young people and a step toward a tobacco-free generation. The minister argues that outdated rules allow companies in the sector to circumvent the rules and target young consumers.

The link between taxation and prevention also appears in the report on the European Beating Cancer Plan, adopted in September by the European Parliament’s Committee on Public Health, SANT. The text calls for increases in and the convergence of minimum excise duty levels for tobacco and nicotine, in order to reduce the affordability of the products. The plenary debate is scheduled for November 11, and the vote for November 12. These are political demands of the parliamentary committee, not tax rates adopted by ministers.

Harris intends to resume talks in December, after further consultations with the member states, while Dombrovskis announced that the European executive will support reaching an agreement. December is a negotiating objective, not the date when new taxes will apply.

https://2eu.brussels/ro/news/ministrii-ue-nu-ajung-la-un-acord-privind-taxarea-tutunului