Brussels, 30 March 2007
"I am going to make a legislative proposal on tobacco taxation at the end of this year. Recent discussions with business and Member States indicate that there is a need for modernisation and simplification", said László Kovács, Commissioner for Taxation and Customs Union. "When making a new proposal on tobacco taxation, we must ensure the proper functioning of the Internal Market and at the same time respect other Community policies, in particular health protection. I therefore want to launch a debate as broad as possible"
Under the Tobacco Excise Directives the Commission is required to examine
every four years, the smooth operation of the single market, the real value of
excise-duty rates and the wider objectives of the Treaty. Although excise duty
is primarily an instrument for generating revenue at national level,
policy-making in this area has to take the wider objectives of the Treaty into
account. Given the characteristics of manufactured tobacco products, this
examination needs to pay particular attention to health policy considerations,
taking stock of the Framework Convention on Tobacco Control, recently agreed
within the World Health
Organisation. In addition, priority should also be given to questions of
simplification and transparency of the structure of excise duties on cigarettes
as well as the options to bring the structure of excise duties for fine-cut
smoking tobacco into line with the structure of excise duties for cigarettes.
For further background information on tobacco taxation see:
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