The Portuguese government has included tobacco-free nicotine pouches in the Special Consumption Tax (IEC) list under the proposed 2026 State Budget. Delivered to Parliament by the Minister of Finance, the proposal establishes a specific tax rate of €0.065 per gram for these oral nicotine products.
This regulatory step implicitly confirms that Portugal will permit the sale of nicotine pouches rather than banning them. Previously, health regulator Infarmed had not formally authorized these products, despite their growing popularity among younger consumers.
Defining Nicotine Pouches Under the Tax Code
The budget proposal introduces Article 104-D to the Special Consumption Tax Code. The text defines the taxable item as a product containing natural nicotine, packaged individually in sachets or unit devices, containing up to 12mg of nicotine, and containing no tobacco. These products are designed for oral use, releasing nicotine to be absorbed through the gums.
While popular among younger demographics, nicotine pouches have drawn concern from health experts and the World Health Organization due to addiction risks.
Projected Tax Revenues for 2026
The new tax on nicotine pouches joins broader excise duties on tobacco, alcohol, and sugary beverages. The government expects rising private consumption to drive up tax yields across all these categories.
| Tax Category | Projected 2026 Revenue | Increase from 2025 |
|---|---|---|
| Tobacco Tax (All Types) | €1.676 Billion | +€72 Million (4.4%) |
| Alcohol & Sugar (IABA) | €317 Million | +€8 Million (2.5%) |
| Total Combined Revenue | €1.993 Billion | +€80 Million (4.2%) |
The state expects tobacco tax revenue alone to reach €1.676 billion next year. Combined with alcohol and sugar taxes, these duties will generate nearly €2 billion for the Portuguese state in 2026, helping fund public programs and health initiatives.
