EU tobacco tax talks resume as Ireland sets 9 November Ecofin vote

Ireland has sent EU member states two confidential compromise texts dated 20 October on the bloc’s tobacco excise reform, discussed by tax attachés on 26 October ahead of a 9 November finance ministers’ vote requiring unanimity. The Vaping Post reported the texts are classified LIMITE and have not been published.

The underlying documents are two draft Council directives: one on the structure and rates of excise duty, the other on the general arrangements for excise duty. Ireland holds the rotating Council presidency and drafted both. Neither text is public, so the specific rate figures they contain cannot be checked from the source.

Finance ministers are scheduled to vote at the 9 November Ecofin

Ireland wants a political agreement among the 27 member states’ finance ministers at that meeting. Unanimity is required, so a single dissenting state can block the file.

The Council’s High-Level Working Party on Tax Questions discussed the texts on Monday 26 October. Its agenda listed an exchange of views aimed at reaching agreement.

Two earlier attempts failed in June

The Cypriot presidency’s compromise was pulled from the Ecofin agenda in June. The European Parliament then rejected that text by 439 votes to 181.

The November date itself reflects a delay: the vote had been expected at the October Ecofin and was moved back to give Sweden time to form a government.

Sweden remains the main opponent without a confirmed government

Sweden has been under a caretaker government since 17 September, when Prime Minister Ulf Kristersson asked to be relieved of his duties after the 13 September election.

On 15 October the Riksdag rejected Social Democrat Magdalena Andersson’s bid to become prime minister. Centre Party leader Elisabeth Thand Ringqvist returned her government-formation mandate to the Speaker on 26 October, the day of the Brussels meeting.

The Speaker can put up to four candidates to a vote, of which three remain after Andersson. If none succeeds, a snap election must follow within three months. An outgoing administration, the source argues, would struggle to secure the Riksdag EU Affairs Committee mandate needed on such a contested file.

In April, Swedish Foreign Trade Minister Benjamin Dousa said his government would do everything it could to block the EU tax increase on nicotine pouches.

Around ten other states have raised reservations

Italy, Portugal, Romania, Greece, Hungary, Croatia, Malta, Czechia, Slovakia and Luxembourg have voiced concerns since the Commission tabled its proposal in July 2025. Italy cites smuggling risk; Romania and Italy cite effects on low-income smokers; Portugal cites fiscal sovereignty; the others consider the proposed minimum rates too high.

What changes for operators, and from when

No operator faces a new duty until ministers agree and the directives enter force. Retailers, distributors and manufacturers selling across borders would be affected by common minimum excise rates and revised movement rules.

Nicotine pouch suppliers face the same file: Sweden’s stated objection concerns the pouch tax increase specifically. Until unanimity is reached, national excise rules continue to apply.

Lithuania’s presidency from January 2027 carries its own national rules

Lithuania holds the Council presidency from 1 January to 30 June 2027, in a trio with Ireland and Greece. Its announced priorities cover security and defence, Ukraine, enlargement, competitiveness, internal security, democratic resilience and social security; tobacco or vaping is absent.

Nationally, the Seimas voted 92 to 9 in January 2022 to ban flavoured e-cigarettes and e-liquids except tobacco flavour. Under a three-year plan partly meant to fund defence, Lithuanian excise on e-liquids rose from €0.25/ml in 2024 to €0.63 in 2025 and €1.56 in 2026, reaching €3.91/ml on 1 January 2027.

That figure is more than ten times the €0.36/ml EU floor in the Cypriot compromise, according to the source. The Seimas rejected a proposed cut in 2025; the prime minister at the time opposed it, arguing bad habits should not be encouraged.

Lithuania co-signed calls in June 2024 and June 2025 for EU action against new tobacco and nicotine products, but is not among the eight signatories of the 6 October 2026 letter seeking a market freeze and general flavour ban. Any member state or the Commission can ask for the tax file or a TPD revision to be placed on the presidency agenda.

Questions readers ask

When will EU finance ministers vote on the tobacco excise reform?

Ireland is aiming for a political agreement at the Ecofin meeting on 9 November 2026. The vote had earlier been expected at the October Ecofin and was postponed to give Sweden time to form a government. All 27 member states must agree, so one dissenting minister can block the file.

Why is Sweden opposing the EU nicotine tax increase?

Sweden is the reform's main opponent. In April, Foreign Trade Minister Benjamin Dousa said his government would do everything it could to block the EU tax increase on nicotine pouches. Sweden has been run by a caretaker government since 17 September 2026, and the Riksdag rejected Magdalena Andersson's bid for prime minister on 15 October.

What does Lithuania's Council presidency mean for vaping rules?

Lithuania holds the presidency from 1 January to 30 June 2027, and its announced priorities do not include tobacco or vaping. Nationally, Lithuania bans flavours other than tobacco and raises e-liquid excise to €3.91/ml on 1 January 2027. Any member state or the Commission can still ask for the tax file to be scheduled.

What was the European Parliament's vote on the excise text?

The European Parliament rejected the previous compromise by 439 votes to 181. That text, drafted under the Cypriot presidency, had already been withdrawn from the Ecofin agenda in June. Ireland's replacement texts, dated 20 October 2026, are classified LIMITE and have not been published.