Sweden Backtracked on Snus – Malta Blocked the EU's Tax Plans

The Swedish government has long emphasized snus as a matter of principle and promised to defend Sweden’s right to self-determination. But when the EU negotiated new nicotine taxes, Sweden accepted a compromise. Instead, it was Malta that blocked the agreement.

At a meeting of EU finance ministers on Monday, member states negotiated new minimum taxes on tobacco and nicotine products. Sweden had previously opposed EU plans to tax white snus, arguing that taxation should be determined at the national level. Despite this, the government accepted a compromise that would establish common EU minimum taxes, reports Sweden Herald.

The compromise meant that the EU’s proposed minimum tax on white snus was significantly reduced. Sweden would thus avoid a major tax increase, but at the same time accept that the EU would have the right to set a minimum tax rate for snus.

From a Matter of Principle to a Compromise

The issue of snus has long been a politically sensitive one in Sweden. The government has emphasized the importance of protecting Swedish conditions from EU tax policy. But by accepting the compromise, Sweden shifted from opposing common minimum taxes to accepting the principle, while securing more favorable terms for Swedish nicotine pouches.

Malta put its foot down

When Sweden accepted the compromise, one obstacle remained: Malta. The country refused to approve the agreement because it believed the proposed minimum taxes would disproportionately harm it. Since EU decisions on excise taxes require unanimity, Malta’s “no” was enough to block the entire tax package.

Sweden can still say no

According to Ireland’s Finance Minister Simon Harris, 26 of the 27 member states supported the compromise. Negotiations are expected to continue in December, giving Sweden another opportunity to oppose common EU taxes. The government could then return to its previous position and demand that taxation of snus continue to be determined in Sweden.