EU finance ministers failed to agree on revised tobacco tax rules on Monday, 9 November, despite an Irish presidency push that brought the bloc close to unanimous support. Rapporteur reported that talks ended without a deal.
Irish Finance Minister Simon Harris said 26 of the EU’s 27 member states supported the proposal, identifying Malta as the remaining holdout, according to Reuters. EU taxation legislation requires unanimity, allowing a single country to block agreement.
However, subsequent reporting by MaltaToday identified reservations from Finland and Estonia alongside Malta’s opposition. Maltese Finance Minister Clyde Caruana warned that the proposed minimum rates could disproportionately affect his country. Finland considered the proposed minimum duties on nicotine pouches too low, while Estonia raised concerns over future rate adjustments without unanimous approval.
The reform would increase minimum excise duties on cigarettes and rolling tobacco and extend the EU framework to products including vaping liquids, heated tobacco and nicotine pouches. Governments would remain free to set national duties above the agreed minimums, the Irish Examiner reported.
Negotiations have exposed competing national priorities. Sweden previously resisted higher duties on nicotine pouches, while Italy warned that steep increases could encourage illicit trade, according to Philenews.
The failure to secure agreement leaves Ireland’s presidency seeking a compromise between public health objectives, national economic concerns and governments’ control over taxation.
