Sweden is standing in the way of a European Union deal to tax nicotine pouches, with finance ministers due to vote on the tobacco tax overhaul on Monday 9 November; tax law needs all 27 member states, giving Stockholm a veto.

The Irish presidency believes an agreement could be reached on Monday and is seeking a discussion at ministerial level. But Sweden, which has no government in place after September's election produced a new centre-left parliamentary majority, could be the main obstacle, according to Agence Europe.

The dispute centres on the minimum excise duty for nicotine pouches. Under the latest compromise drawn up by the Irish presidency, the minimum would be €30 per kilogram in 2028 and 2029, €40 in 2030 and 2031, and €50 from 2032. Sweden says an agreement will only be possible if the duty stays close to the level applied in Sweden, around €20.

In its official position published on 2 November, the Swedish government called taxing nicotine pouches at levels comparable to certain forms of smoking tobacco unacceptable. Stockholm argues countries should keep the freedom to tax nicotine products by their relative health risks, a position the new parliamentary majority has maintained.

A package that needs unanimity

The Commission's original July 2025 proposal sought a minimum duty of €143 per kilogram, so the compromise already cuts the rate by about 65 percent. The package would also raise minimum duties on cigarettes and extend EU-wide minimum taxes to heated tobacco and e-cigarette liquids. Traditional Swedish snus stays outside the directive.

Because EU tax law needs unanimous approval, Sweden can block the whole package even if the other 26 member states back it. Bilateral talks were continuing ahead of the meeting, with new Irish presidency proposals expected on Friday evening.