German tobacco industry leaders gathered at InterTabac to criticize the EU tax reform proposal: high taxes will kill the nicotine pouch industry and hurt fiscal revenue

Sep.19
At the InterTabac opening press conference, German tobacco industry leaders criticized the EU’s proposed tax reform, warning that steep hikes could devastate the nicotine pouch sector, reduce excise revenue, and fuel illicit trade. They called on German policymakers to oppose the changes at the European level.
German tobacco industry leaders gathered at InterTabac to criticize the EU tax reform proposal: high taxes will kill the nicotine pouch industry and hurt fiscal revenue
Representatives of the German tobacco industry blasted the European Commission's tobacco tax proposal during the InterTabac opening conference. |Photo: Taco Tuinstra

 

2Firsts, September 18, 2025, Dortmund, Germany – The InterTabac and InterSupply exhibitions opened in Dortmund, Germany on September 18th, raising concerns within the industry about the serious issues raised by the European tobacco tax reform. In July 2025, the European Commission proposed revising existing tobacco tax rules, significantly increasing the minimum tax rate across the EU.

 

At a press conference opening the event in Dortmund, leading representatives of the German tobacco industry expressed reservations about the proposed tax rate, arguing that it was far higher than justified by changes in consumer incomes and economic evidence.

 

Unintended Consequences

 

Speakers predicted a series of negative consequences from the proposal, including a decrease in excise tax revenue and an increase in illicit trade, particularly in economically weaker EU member states. Regarding nicotine pouches, industry representatives at the conference stated that the tax increase could directly render the entire industry unviable.

 

Michael von Foerster, CEO of the German Cigarette and Tobacco Industry Association, called the move "a money-making scheme disguised as coordinating EU fiscal policy." He noted that such a move would not protect health or increase state tax revenue, but would instead disrupt the legal market and stimulate illegal sales.

 

His sentiments were echoed by Jan Muecke, CEO of the German Tobacco Industry and Next Generation Products Association. Muecke noted that Germany's "gradual, predictable tax increase strategy" has been effective, achieving steady growth in tobacco tax revenue even amid stagnant cigarette sales.

 

A Bad Example

 

Muecke contrasted Germany's situation with France and the Netherlands, both of which have implemented sudden and significant tax increases on tobacco products. He noted that in France, the price of cigarettes increased from €8.60 in 2019 to €12.50 in 2025, leading to an "explosive growth" in the illegal market. According to Muecke, the French government lost approximately €9 billion in tobacco tax revenue as a result.

 

After a similarly large tax increase in the Netherlands, tobacco tax revenue also fell by 24%.

 

"The message is clear," said Muck. "High taxes don't make people quit smoking; they simply encourage them to buy products from other sources."

 

Political Support

 

Bodo Mehrlein, CEO of the German Cigar Industry Association, noted that the proposal would increase taxes on some cigar products by more than 1,000%. He said the policy runs counter to efforts to improve the competitiveness of European companies and puts enormous pressure on tobacco industry owners.

 

Despite industry concerns, attendees found hope in feedback from German politicians. Some politicians said they would oppose changes to the current tax system, which is considered effective in Germany.

 

"Germany's tobacco tax system is correct," said Muck. "We hope it will remain so, and we hope the German government can exert influence in Brussels."

 

For more on-the-ground coverage, visit the 2Firsts Inter Tabac Special Section.

 

Report: Smoking Rates Remain Unchanged Despite Kazakhstan’s Vape Ban
Report: Smoking Rates Remain Unchanged Despite Kazakhstan’s Vape Ban
According to Exclusive.KZ, Kazakhstan’s Strategy Public Foundation released a study finding that strict tobacco and vape bans have not reduced smoking rates, which remain at 18–20%. The report calls for harm reduction approaches based on international best practices.
Nov.06 by 2FIRSTS.ai
2Firsts Investigation | China–U.S. E-cigarette Shipping Costs Surge: Sea Freight Up Over 200%, Air Cargo Inspection Rate Exceeds 50%
2Firsts Investigation | China–U.S. E-cigarette Shipping Costs Surge: Sea Freight Up Over 200%, Air Cargo Inspection Rate Exceeds 50%
Since late July, China–U.S. e-cigarette shipping costs have surged — sea freight up over 200%, air cargo inspection rates exceeding 50%. 2Firsts investigates the key drivers behind the spike and how the industry is responding.
Oct.15
Thai Cabinet Approves NHRC Proposal to Tighten E-Cigarette Regulation
Thai Cabinet Approves NHRC Proposal to Tighten E-Cigarette Regulation
Thailand’s Cabinet approved a National Human Rights Commission proposal to tighten e-cigarette regulation. The Health Ministry was instructed to raise public awareness on vaping risks and amend the 2017 Tobacco Control Act to cover all tobacco products, including vapes and new forms, while enforcing WHO FCTC Article 5.3 to prevent industry interference.
Oct.28 by 2FIRSTS.ai
Singapore Sentences Malaysian Lorry Driver to 27 Weeks Over Cross-Border Vape Smuggling
Singapore Sentences Malaysian Lorry Driver to 27 Weeks Over Cross-Border Vape Smuggling
A 32-year-old Malaysian driver, Mohammad Fakaruddin Mohd Rosli, was sentenced to 27 weeks’ jail after pleading guilty to smuggling more than 14,000 vapes and components into Singapore and later attempting to leave the country illegally by hiding in another lorry’s cargo hold.
Nov.04 by 2FIRSTS.ai
Altria and NJOY Sue ITC, Claim Judge Appointment Process Is Unconstitutional
Altria and NJOY Sue ITC, Claim Judge Appointment Process Is Unconstitutional
Altria Group and its NJOY subsidiary have filed a lawsuit in Virginia federal court challenging the U.S. International Trade Commission’s process for appointing administrative law judges. The companies allege the system violates the U.S. Constitution and seek to halt an ITC patent investigation initiated by rival Juul.
Nov.10
B.C. Plans World’s First E-Cigarette Public Health Accountability Law Aimed at “Deceptive Marketing”
B.C. Plans World’s First E-Cigarette Public Health Accountability Law Aimed at “Deceptive Marketing”
British Columbia, Canada is advancing what it calls the world’s first e-cigarette Public Health Accountability law, granting the government authority to sue companies for “deceptive marketing.” The move puts public-health risks at the center of vaping industry compliance.
Oct.10 by 2FIRSTS.ai