The Danish Presidency of the Council of the European Union, pressured by hard-line NGOs, is making a bold, last-minute push to significantly increase taxes on most tobacco and nicotine products.
That is according to a newly amended draft of the EU’s Tobacco Excise Directive (TED) obtained by Brussels Signal yesterday.
The revised Danish proposal introduces stricter definitions, higher tax rates and a more aggressive approach to closing loopholes. It reflects the priorities of hard line NGOs such as Smoke Free Europe and seems, in parts, at odds with the positions of member states and ongoing scientific debates.
The Danish amendments adopt the numerical proposals championed by NGOs. They include setting the tax rate for heated tobacco products (HTPs) at €360 per kilogramme, more than double the European Commission’s initial suggestion of €155/kg.
This figure aligns with recommendations from NGOs that have long advocated for parity in taxation between HTPs and traditional cigarettes.
The proposal also abandons the EC’s dual tax system – which allowed for both per-item and per-kilogramme taxation – in favour of a single, kg-based minimum rate, ensuring that HTPs face the same tax burden as cigarettes.
This approach seemingly ignores the scientific debate about the relative risks of alternative nicotine products.
Countries including Sweden, Greece and several eastern European states have embraced these products as part of harm reduction strategies, arguing that they can help smokers transition away from more harmful traditional cigarettes.
The Danish Presidency’s draft frames all nicotine products as equal health risks, particularly for young people and pushes for maximum taxation regardless of any counter evidence.
The proposal also tightens definitions for products suxh as “raw tobacco”, “waterpipe tobacco” and “electronic cigarettes” to eliminate ambiguities and ensure all forms of these products are subject to the highest possible taxation.
For example, the draft now classifies all harvested tobacco as “raw tobacco”, regardless of its processing stage, a move intended to combat tax evasion but potentially hurting tobacco farmers and encouraging illicit trade.
A particularly contentious adjustment concerns how heated tobacco products are taxed.
Under the Danish proposal, products containing 0.45g to 0.75g of tobacco would be counted as two items for tax purposes, while those with 0.75g to 1.05g would be counted as three.
This system aims to align HTP taxation with that of traditional cigarettes but has been criticised for overestimating tobacco content and disregarding the potential for harm reduction.
The Danish Presidency’s approach appears set to deepen already strong divisions among EU member states.
Countries such as Greece and Sweden, where alternative nicotine products are widely used, could see price increases of up to €1.70 per pack in Greece and €2.80 per can of nicotine pouches in Sweden.
Critics argue that such rapid and substantial tax hikes could fuel the black market and disproportionately affect lower-income consumers, undermining the very public health goals the proposal claims to advance.
Meanwhile, the plan’s one-size-fits-all approach clashes with preferences of member states that favour gradual tax increases or harm reduction strategies and have successfully reduced smoking rates through alternative approaches, even lowering cancer rates in some cases.
Denmark succeeded Poland as President on July 1, 2025. The next presidency will be held by Cyprus, starting on January 1, 2026.
Leaked negotiating documents from the Council of the European Union’s Danish Presidency have exposed a controversial bid by the Danish Government and the European Commission to impose new tobacco rules. https://t.co/LnbCH4nBJU
— Brussels Signal (@brusselssignal) November 24, 2025
