European smokers face higher tobacco prices

The European Commission presented on the 16 July 2008 a Report and a proposal for a Directive to amend the current EU excise duty legislation on tobacco. The draft Directive foresees a gradual increase in the EU minimum taxation levels on cigarettes and fine cut tobacco up to 2014. It also updates the definitions of different types of tobacco products so as to remove loopholes which allow certain cigarettes or fine cut tobacco to be presented as cigars, cigarillos or pipe tobacco and therefore benefiting from a lower tax rate. The proposal will narrow differences between Member States' tobacco taxation levels and so help tackle intra-EU tobacco smuggling. It would also make the taxation rules more transparent, thereby creating a level playing field for manufacturers and giving flexibility to Member States to set minimum taxes. It also aims to contribute to reducing tobacco consumption by 10% within the next 5 years.

European Commission: Press Release: IP/08/1149: Tobacco taxation: Commission proposes increasing excise duties http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1149&format=HTML&aged=0&language=EN&guiLanguage=en

---