Portugal Joins EU Pushback Against New Vape & Tobacco Tax

EU Tobacco Tax Portugal Vape Ban

Portugal has publicly challenged the European Commission’s proposed revision of the Tobacco Excise Directive (TED), joining a growing coalition of member states concerned about its far-reaching consequences. The Portuguese Ministry of Finance warns that the directive, which aims to harmonize taxes across the bloc, could fuel illicit trade, cause annual revenue losses of up to €1.5 billion, and undermine the fiscal autonomy of member states.

The proposed TED seeks to equate the taxation of reduced-risk alternatives—such as vapes, nicotine pouches, and heated tobacco products—with that of traditional cigarettes. Critics argue this ignores scientific evidence showing these products are significantly less harmful and are used by millions of Europeans as smoking cessation aids. The proposal includes a potential 790% tax increase on nicotine pouches.

Portugal, along with countries like Greece, Romania, Sweden, and Bulgaria, argues that the measure, presented under the guise of public health, is a move to centralize fiscal power in Brussels while ignoring national economic and cultural realities. Sweden, a leader in tobacco harm reduction, fears the directive could jeopardize its progress in achieving historically low smoking rates. Greece and Bulgaria are concerned about the economic impact on their significant tobacco industries.

As the TED proposal requires unanimous approval, this growing resistance provides a real opportunity for member states to block or force a reconsideration of a directive they see as counterproductive to both public health and national sovereignty.

Matthew Ma
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