Leaked EU document reveals tax shock on white snus amid economic, political and criminal concerns

A leaked European Commission document has exposed a controversial plan to impose a sharp EU-wide tax increase on white snus, potentially igniting serious economic, political, and criminal consequences.

Published by Snusjournalen, the leaked directive is being pushed by the Directorate-General for Taxation and Customs Union (DG TAXUD), and could have far-reaching implications across the bloc.

A perfect storm: Trade war, inflation and new tariffs

The leak comes as Europe battles a worsening economic climate. Inflation remains persistent, economic growth is faltering, and tensions with the United States have escalated — culminating last night in the US imposing fresh tariffs on EU-made cars and light trucks.

With purchasing power shrinking and industry under pressure, critics say the tax plan could hit consumers hard and deter investment in EU-based production.

Europol raises red flags over illicit trade

Compounding concerns, a new Europol report, The Changing DNA of Serious and Organised Crime (full report here), warns of the direct link between excessive taxation and the surge in illicit markets — specifically referencing tobacco and nicotine products on page 76.

“Excessive taxation regimes are a direct driver of illicit markets,” the report states. “Criminal networks are exploiting these environments to scale operations and launder proceeds.”

Analysts fear that steep price hikes on white snus could drive a parallel market, with products smuggled across EU borders or imported illegally from non-EU countries like China.

Blow to state revenues and rise of populism

Ironically, what was intended to boost state tax revenues may do the opposite. As consumers seek cheaper, often illegal alternatives, governments risk losing existing tax income. Central and Eastern European states, where white snus sales are growing, are particularly vulnerable.

The proposed directive may also fan the flames of populism. Anti-EU parties are already capitalising on narratives that "Brussels only regulates and taxes." A new consumer-facing tax on a legal product may offer fresh fuel for their campaigns ahead of the EU elections.

Strategic backfire?

From an international investment standpoint, the proposal could play into US hands. With European businesses facing rising costs and regulatory burdens, the Biden or Trump administrations could lure manufacturers to American soil with friendlier policies.

What comes next?

While the Commission has not confirmed the directive publicly, the leak has sparked serious concerns among stakeholders — ranging from law enforcement to consumer groups and investors.

With the Europol report highlighting a surge in cross-border illicit trade and the political climate increasingly volatile, this tax proposal could become one of the most contested regulatory battles in the coming months.

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