The Cypriot presidency of the Council of Ministers had hoped to raise the issue at next week's finance ministers' meeting in Luxembourg, but has been forced to abandon the effort in advance.
“Unfortunately, despite our efforts in recent months, it is not possible to reach an agreement,” a Cypriot spokesperson said in a written statement.
The disagreement is in large part due to Sweden, which does not accept that nicotine pouches - so-called white snus - are also covered by the European Commission's proposal from last summer.
Since tax issues require unanimity, Sweden effectively has veto power on the issue.
However, the European Parliament's economic affairs committee agreed on its view on the matter on Wednesday. They advocate a tax of 50 euros - 545 kronor - per kilogram of white snus.
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