Press Release: Excise duties/Minimum retail sale prices for cigarettes: the Commission refers Austria and Ireland to the Court of Justice

On 31 January, 2008, the European Commission decided to refer Austria and Ireland 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 minimum 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.