
Key Points:
- Policy Dynamics: The EU plans to revise the Tobacco Excise Directive, including nicotine pouches under taxation for the first time, acknowledging their status as smoke-free alternatives.
- Corporate Position: BAT France supports their inclusion in taxation but opposes excessive taxes and unilateral bans. The company advocates differentiated taxation to reflect harm reduction potential.
- Core Controversy: France’s proposed ban on nicotine pouches is seen as a threat to EU regulatory coordination, single market integrity, and could stimulate the illicit market.
- Evidence Basis: Nicotine pouches have contributed to declines in smoking rates in countries like Sweden. The current EU proposal, which taxes them the same as combustible tobacco, is criticized as disproportionate.
According to BAT France (August 18, official website), the company welcomed the European Commission’s July 16 proposal to revise the Tobacco Excise Directive (TED), which would bring nicotine pouches into the European tax system for the first time.
BAT France noted that the inclusion of nicotine pouches in taxation represents important institutional recognition of these smoke-free alternatives, which are increasingly used by adult smokers seeking to move away from combustible products.
At the same time, the company highlighted two risks: on the one hand, excessive taxes may reduce accessibility of these products; on the other hand, some Member States—including France—might attempt unilateral bans, which would disrupt Europe’s harmonization process.
Sébastien Charbonneau, Director of Public Affairs at BAT France, stated:
“It is important that nicotine pouches are recognized in European law. But it is crucial to adopt a differentiated tax policy that reflects their potential role in reducing harm for smokers.”
Building a European Harm Reduction Policy
In several countries, nicotine pouches have significantly contributed to reductions in smoking prevalence. In Sweden, their use has brought smoking rates down to the lowest in Europe (5.4%). Their inclusion in the Tobacco Excise Directive will facilitate regulation, monitoring, and taxation, but should not be used as a pretext to make them inaccessible through punitive taxation.
Matching Taxation with Risk Levels
The European Commission’s current proposal envisages very high excise duties on nicotine pouches, without clear distinction from combustible tobacco products. This approach violates the principle of proportionality and contradicts the EU’s stated public health objectives. Reduced-risk alternatives must be subject to differentiated taxation.
Acting Within the Existing European Framework
France has notified the European Commission of its plan to ban nicotine pouches. BAT France argues this move is premature and isolated, undermining the EU’s coordinated approach to regulating tobacco and reduced-risk alternatives.
Such unilateral action contradicts:
- The harmonization goals of the Tobacco Excise Directive, which forms part of discussions on the EU’s next Multiannual Financial Framework (MFF);
- The integrity of the single market, as it may create trade barriers and encourage the growth of France’s parallel market;
- Regulatory consistency with the Tobacco Products Directive (TPD), which is currently under review and due to be discussed at the European level.
If nicotine pouches are made illegal in France but remain available in other EU markets, French consumption will not disappear—it will shift to the illicit market. France’s unilateral action would disrupt ongoing EU-level discussions and create legal uncertainty for economic stakeholders.
France Should Support Transparent Debate and EU Coordination
More than 50 parliamentarians have called for a democratic debate on the regulation of nicotine pouches. Three related bills have already been introduced in spring 2025. BAT France fully supports this call for democratic transparency and urges that France’s position be aligned with EU objectives: lowering smoking rates, ensuring regulatory consistency, and safeguarding the integrity of the internal market.
BAT France calls for:
- Implementation of differentiated taxation that reflects product risk levels and supports public health goals;
- Transparent parliamentary debate in France, respecting democratic processes and European commitments;
- Avoidance of unilateral measures that could trigger legal, economic, and political tensions within the EU.
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