BAT France Warns Against Punitive Tax on Nicotine Pouches
British American Tobacco (BAT) France has acknowledged the European Commission’s proposed revision of the Tobacco Excise Directive (TED), welcoming the inclusion of tobacco-free nicotine pouches within the scope of European taxation for the first time. The company views this as a crucial institutional recognition of these products as alternatives for adult smokers seeking to move away from combustible tobacco.
However, BAT France also issued a stark warning about two major risks associated with the current proposal and national responses. Firstly, they caution against disproportionate, punitive taxation that could make these reduced-risk alternatives inaccessible to adult smokers. Secondly, they criticize the temptation by some Member States, including France, to preempt the European process by attempting to unilaterally ban these products.
Sébastien Charbonneau, Director of Public Affairs at BAT France, stated, “It is important that nicotine pouches are recognized in European law. But it is essential to adopt a differentiated tax approach that reflects their potential role in harm reduction for smokers.” The company argues that the Commission’s current proposal, which envisions very high excise levels on nicotine pouches without a clear distinction from traditional cigarettes, contradicts the principle of proportionality and public health goals. They advocate for a tax structure aligned with the products’ relative risk levels.
BAT France highlighted the success of nicotine pouches in countries like Sweden, which has achieved Europe’s lowest smoking rates (5.4%), partly due to the widespread use of such alternatives. They argue that France’s plan to ban nicotine pouches, while the EU is working on a harmonized directive, undermines regulatory coherence and the integrity of the single market. Such a unilateral move, they contend, would not stop consumption but would instead create an illicit market for unregulated products, while also creating legal uncertainty for economic stakeholders.
With over 50 French parliamentarians calling for a democratic debate on the regulation of nicotine pouches, BAT France supports these calls for transparency. The company is urging the French government to align its position with the EU’s broader objectives of reducing smoking and preserving the internal market, rather than acting in isolation. They are calling for a differentiated tax system, an open parliamentary debate in France, and the avoidance of any unilateral decisions that could create legal and political tensions within the European Union.
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