227. Deputy Colm Burke asked the Tánaiste and Minister for Finance Ireland's position on the application of excise duties to novel nicotine products at EU level, in the context of the anticipated revision of both the Tobacco Products Directive and the Tobacco Taxation Directive; whether Ireland supports a risk-proportionate approach to the taxation of such products relative to combustible tobacco; and if he will make a statement on the matter. [32835/26]

Simon Harris, Tánaiste and Minister for Finance: New novel products, such as nicotine pouches and heated tobacco products (non-combustible cigarettes), are outside the scope of the existing Tobacco Tax Directive (2011/64/EU) and currently not subject to excise duty.

On 16 July 2025, the EU Commission officially adopted a proposal for a recast of the Tobacco Tax Directive. The revision proposes an increase in minimum tax rates for traditional tobacco products, the expansion of the Directive to include new products (such as e-liquids and nicotine pouches), and the extension of the scope of the Directive to include raw tobacco to help in the fight against illicit manufacturing.

I very much welcome the proposal to include novel products in the scope of the revised Directive. Harmonising definitions and the tax treatment of novel products, such as nicotine pouches, will help to avoid legal uncertainty and regulatory disparities across the EU. Additionally, increasing minimum tax rates will help to reduce the significant price differentials that currently exist between Member States and reduce the affordability of new novel products.

Ireland is largely supportive of the measures included in the revised Directive and looks forward to constructive engagement on the Directive over the coming months.