Malta blocks EU agreement on tobacco taxation

Malta has blocked an EU agreement on tobacco product taxation after refusing to back a proposal that required unanimous approval from member states, despite Sweden, Finland and Estonia agreeing to support the deal.

The disagreement emerged following lengthy discussions, with Malta remaining unconvinced by proposals to introduce automatic adjustments to tax rates over time.

Sweden, Finland and Estonia had reportedly been persuaded to support the agreement late in the day. Sweden was also close to securing a significant concession from the EU to protect its traditional tobacco-free nicotine product, known as white snus.

However, Malta's opposition prevented the member states from reaching the unanimity required to approve the proposed changes.

NEGOTIATIONS TO RESUME IN DECEMBER

The agreement has not been abandoned altogether. Negotiations with Malta are expected to continue, and the issue is scheduled to return to the EU agenda in December.

The proposed reform concerns taxation of tobacco products across the bloc, an issue that has exposed differences among member states over tax rates and the treatment of specific nicotine products.