Sweden Caved on Snus Tax - Malta Stopped Brussels Instead

BRUSSELS - The EU's new tobacco tax collapsed on Monday night. But not because of Sweden.

By then the Swedish government had already given up its resistance and agreed that white snus - nicotine pouches - should come under EU tax rules. It was Malta that finally said no.

At the meeting of EU finance ministers in Brussels, 26 of 27 member states backed the Irish presidency's final compromise. Tax matters require unanimity, so Malta's veto was enough to sink the whole package.

The Commission's original proposal from last year would have meant a minimum tax on nicotine pouches of around 1,500 kronor per kilo. Sweden charges about 200 kronor today.

"Other countries don't decide over our snus"

Going into the meeting, the government's line looked crystal clear. In its briefing to parliament it called it "unacceptable" to tax nicotine pouches on a par with some smoking tobacco, and said it could not support the proposal.

In June, Finance Minister Elisabeth Svantesson promised on X that "other countries don't decide over our snus".

On Monday, Sweden dropped its no anyway, after Ireland tabled an offer that reportedly matched Sweden's own tax level. Finland's finance minister Riikka Purra then went on the attack, claiming cheap Swedish pouches increasingly reach young people through illegal channels and that the minimum level had been "totally watered down".

Principle now, numbers later

A new offer came during the evening: nicotine pouches would be covered by the directive, but the actual tax level would be set later. The Commission would come back with a new proposal within a year of the rules taking effect.

Ireland's finance minister Simon Harris summed it up as agreeing "on the principle today and looking at the figures tomorrow".

That brought Sweden, Finland and Estonia on board. Malta held firm, pointing out that the minimum rates for cigarettes are far above its own - and stressing that taxes are a national matter. The same argument Sweden used to make about snus.

Brussels will be back

The issue is far from dead. Ireland wants another attempt in December, before its presidency ends at New Year.

If that succeeds, Sweden will have accepted that white snus falls under EU tax rules, with the level decided in a fresh negotiation where Finland will push for a higher tax. Traditional tobacco snus remains exempt, according to the government.

The European Parliament voted against the tobacco tax directive in June. But on tax, Parliament is only advisory. The decision lies with the finance ministers.