The EU is under growing pressure to tax vapes and nicotine pouches, with 15 finance and economy ministers writing last week to EU Commission President Ursula von der Leyen about the issue.
The letter was part of a wider push for the Commission to publish the long-awaited Tobacco Taxation Directive (TTD). Citing health concerns, the ministers said the existing legislative framework is outdated.
Since the rules were last updated in 2011, new nicotine products have flooded the market.
A revision to include new tobacco and nicotine products like e-cigarettes and heated tobacco was introduced as part of Europe’s Beating Cancer Plan in 2022.
However, the proposal has still not been published, much to the concern of health experts.
“We see that because these products are not taxed properly in the EU — some countries are not taxing them or barely imposing taxes — they became very accessible and not just to adults, but to children. And that’s the reason why revision of the directive is urgent now,” said Lilia Olefir, Director of the Smoke Free Partnership.
The latest European School Survey Project on Alcohol and Other Drugs (ESPAD), published at the end of May, reports a rise in overall daily rates of smoking and vaping among 15-year-olds and 16-year-olds from 7.9% in 2019 to 14% in 2024.
Studies have found children and adolescents’ exposure to nicotine in vaping solutions can lead to long-term negative impacts on brain development, as well as addiction.
Call to action
Momentum for action is growing. In March 2025, a letter from 12 health ministers urged the Commission to re-visit all tobacco-related legislation, including taxation.
Last week, 15 finance and economy ministers wrote to von der Leyen, calling on the EU Commission president to “take the necessary steps to update the directive”.
In response, Commissioner Wopke Hoekstra, who is responsible for taxation, expressed hope that the rules would soon be changed.
The new directive would substantially raise taxes on cigarettes, roll your own cigarettes and cigars.
It would also for the first time introduce minimum excise tax on new products including heated tobacco, e-cigarettes and nicotine pouches.
“These taxes are fundamental because they result in higher prices, which means that the products are less affordable and less accessible,” said Olefir. “Right now, people can buy disposable vape for around eight euros, and nicotine pouches are also quite accessible.”
Some EU countries have in the meantime taken their own measures to target these products. Belgium, for example, became the first in Europe to ban the sale of disposable vapes in 2025.
The country’s Health Minister Frank Vandenbroucke described cheap vapes as a health threat, which can draw teenagers into smoking and get them hooked on nicotine.
Scrutinising proposal
Hoekstra told MEPs that he hoped the new tax proposal would be adopted by the summer.
However, the proposal requires unanimity, which seems a long way off.
The plan has large support in wealthier countries, where excise taxes on tobacco and nicotine products are already relatively high. Because of differences in these rates, they are suffering from rising smuggling and cross-border trade.
Meanwhile, countries like Italy, Greece and Romania, which have lower tax levels, are against any changes to the current rules. They have also made significant investments in the tobacco sector.
Organisations representing industries that would be affected by the revised directive have also criticised the current proposal.
Dustin Dahlmann, the chair of the Independent European Vape Alliance, claimed that introducing taxes would not help protect young people. Instead, he argued that fines should be increased for people selling to minors.
“The tax will make the products more attractive for black market dealers and these kinds of people and businesses don’t care about protecting the minors,” he said.
“In the member states where high taxes are in place, it’s fuelling the black market. Minors are not better protected here than in other countries,” he added.
