Press Release: Excise duties/cigarettes: The European Commission alerts Member States on minimum retail selling prices

The European Commission announced on 8 April 2006 that was taking action against Member States that imposed minimum retail selling prices on cigarettes. The Commission, in line with the jurisprudence of the European Court of Justice, took the view that such minimum prices infringe Community law, distort competition and just benefit manufacturers by safeguarding their profit margins. The relevant Council Directive (95/59/EC) on taxes contains the right of the manufacturer and/or importer of tobacco products to determine the retail selling price. Minimum State prices impair this right and are therefore not compatible with the Directive.