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Taxing Harm Reduction: The EU Seems Set on Undermining Its Own Public Health Goals

As Europe grapples with its public health future, a leaked EU document revealing a controversial tax proposal, is raising significant concerns.

Diane Caruana

April 23, 2025

Last month Vaping Post shared a leaked internal document from the European Commission, obtained by Snusjournalen, which unveiled a controversial proposal to raise taxes on nicotine pouches and other nicotine products by 30% across the EU. Led by the Directorate-General for Taxation and Customs Union (DG TAXUD), the proposal has sparked concern over potential far-reaching economic, political, and criminal fallout throughout the region, and is drawing fierce criticism from consumer advocates and harm reduction groups.

Novel nicotine products should be taxed at lower rates to support harm reduction efforts.

One such group, the World Vapers’ Alliance (WVA), is warning that the tax would undermine efforts to help people quit smoking and disproportionately affect low-income communities where smoking rates remain highest. WVA Director Michael Landl, said the proposal is not only misguided but actively harmful. He argued that it penalizes smokers attempting to quit, exacerbates social inequality, and could intensify anti-EU sentiment by making the Union seem disconnected from the concerns of everyday people.

In line with this, tobacco harm reduction experts have consistently argued that taxing safer alternatives like vapes more heavily is likely to deter smokers from switching, particularly among those with fewer financial resources. Instead, these products should be taxed at lower rates to support harm reduction efforts. Critics of the EU plan are calling on the EC to reconsider before moving forward, warning that the proposed measures could backfire both socially and politically.

Supporting this stance, a new publication from the Global State of Tobacco Harm Reduction (GSTHR) calls on policymakers to rethink how nicotine products are taxed, urging a shift toward a health-driven strategy. The report recommends that traditional cigarettes remain significantly more expensive than safer alternatives like e-cigarettes and heated tobacco products, in order to guide smokers toward less harmful options.

While taxation has long been an effective way to reduce smoking, the paper warns that proposals such as the afore mentioned, aiming to tax safer nicotine products (SNPs) at the same level as cigarettes could backfire. Instead of supporting people trying to quit smoking, such policies could make healthier alternatives unaffordable, potentially pushing users back to traditional tobacco use.

Written by economist Giorgi Mzhavanadze and published by UK-based public health group Knowledge·Action·Change, the GSTHR report reviews global trends and proposes a more nuanced tax framework. It focuses mainly on vaping products and heated tobacco due to the availability of robust data but also notes the implications for other forms like nicotine pouches and snus.

Punishing progress?

By 2023, more than 50 countries and over 30 U.S. jurisdictions had introduced excise taxes on vapes, and 66 countries had implemented taxes on heated tobacco products. However, there’s a wide variation in how these taxes are applied. For instance, Belarus applies an 88% excise burden on vapes, while Kenya’s is just 3%. Some European nations, such as the UK and Ireland, had no excise tax on vaping as of 2023—but this is beginning to change.

Despite these taxes often being lower than those on cigarettes, the price gap between the two product types isn’t always as significant as expected. This is largely due to how companies set prices—often pocketing the tax savings rather than passing them on to consumers. As a result, the intended incentive to switch is diluted.

The GSTHR paper argues that if governments truly want to reduce smoking rates, they should go beyond simply taxing cigarettes. A smarter approach could include subsidizing SNPs to make them more affordable for smokers, especially in low-income populations. Over time, this could lead to major public health gains and even reduce healthcare spending—offsetting potential short-term losses in tobacco tax revenue.

The EU’s tax plan risks health setbacks

In light of mounting evidence and expert warnings, the European Commission’s proposed tax hike on safer nicotine products risks undermining vital public health objectives. Rather than encouraging smokers to transition away from harmful combustible tobacco, equal or excessive taxation on alternatives like nicotine pouches could drive users back to cigarettes or into unregulated black markets. Policymakers are being urged to adopt a more evidence-based, health-focused approach—one that prioritizes harm reduction, addresses socioeconomic disparities, and genuinely supports smoking cessation. Failing to do so may not only jeopardize public health progress, but also erode public trust in EU institutions already under scrutiny.