OBJECTIVE: the proposal for a Directive seeks to make certain technical adjustments to existing
Community legislation in the field of taxation of manufactured tobacco.
SUBSTANCE: in the light of the Commission report on the structure and rates of excise duty on
manufactured tobacco (annexed to the proposal), the Commission proposes to amend:
- certain provisions of Directive 92/79/EEC on the approximation of taxes on cigarettes; the aim
is to allow the Member States greater latitude to adjust the incidence of the overall minimum
excise duty in the event of a change in the retail selling price of cigarettes in the most popular
price category;
- certain provisions of Directive 92/80/EEC on the approximation of taxes on manufactured
tobacco other than cigarettes: the Commission proposes amending existing legislation so as to
allow Member States also to levy a minimum excise duty on cigars, cigarillos and smoking
tobacco. The specific minimum rates for tobaccos other than cigarettes must be adjusted in line
with inflation. Two-yearly adjustments to the structure or rates of excise seem too frequent: five-
yearly intervals are considered more appropriate;
- certain provisions of Directive 95/59/EC on taxes other than turnover taxes which affect the
consumption of manufactured tobacco: it is proposed that the Member States be allowed greater
latitude to adjust the specific component of excise duty in the event of a change in the retail selling
price of cigarettes in the most popular price category.�