Press Release: Excise duties: Minimum retail prices for cigarettes

The European Commission has decided to take France to the Court of Justice for fixing minimum retail prices for cigarettes. The Commission takes the view, based on well-established case law of the Court of Justice of the European Communities, that such prices infringe Community law, distort competition and benefit only manufacturers, by safeguarding their profit margins. To achieve the objective of reducing tobacco consumption, the Commission advocates increasing the excise duty on cigarettes. It has also decided to close the infringement proceeding against Belgium, since the latter has brought its legislation into line in accordance with the Commission’s official request of 4 July 2006 ( IP/06/866).