# CE2010117EN.01022601.xml

| 6.5.2010 | EN | Official Journal of the European Union | CE 117/226 |
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6.5.2010

EN

Official Journal of the European Union

CE 117/226

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Tuesday 24 March 2009Structure and rates of excise duty applied on manufactured tobacco *

P6_TA(2009)0160

European Parliament legislative resolution of 24 March 2009 on the proposal for a Council directive amending Directives 92/79/EEC, 92/80/EEC and 95/59/EC on the structure and rates of excise duty applied on manufactured tobacco (COM(2008)0459 – C6-0311/2008 – 2008/0150(CNS))

2010/C 117 E/41

(Consultation procedure)

The European Parliament,

The European Parliament

having regard to the Commission proposal to the Council (COM(2008)0459),

having regard to Article 93 of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0311/2008),

having regard to Rule 51 of its Rules of Procedure,

having regard to the report of the Committee on Economic and Monetary Affairs (A6-0121/2009),

| 1. | Approves the Commission proposal as amended; |
| --- | --- |

1.

Approves the Commission proposal as amended;

| 2. | Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty; |
| --- | --- |

2.

Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

| 3. | Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament; |
| --- | --- |

3.

Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

| 4. | Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially; |
| --- | --- |

4.

Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

| 5. | Instructs its President to forward its position to the Council and the Commission. |
| --- | --- |

5.

Instructs its President to forward its position to the Council and the Commission.

| TEXT PROPOSED BY THE COMMISSION | AMENDMENT |
| --- | --- |
| Amendment 1 |
| Proposal for a directive – amending act


  Recital 2 |
| (2) | In order to ensure the proper functioning of the internal market and, at the same time, a high level of health protection, as required by Article 152 of the EC Treaty, bearing in mind that the Community is Party to the World Health Organization’s Framework Convention on Tobacco Control (FCTC), different changes should be made in the matter. These changes should take account of the situation prevailing for each of the various tobacco products. |

TEXT PROPOSED BY THE COMMISSION

AMENDMENT

Amendment 1

Amendment 1

Proposal for a directive – amending act

Proposal for a directive – amending act

Recital 2

Recital 2

(2)

In order to ensure the proper functioning of the internal market and, at the same time, a high level of health protection, as required by Article 152 of the EC Treaty, bearing in mind that the Community is Party to the World Health Organization’s Framework Convention on Tobacco Control (FCTC), different changes should be made in the matter. These changes should take account of the situation prevailing for each of the various tobacco products.

| (2) | In order to ensure the proper functioning of the internal market and, at the same time, a high level of health protection, as required by Article 152 of the EC Treaty, bearing in mind that the Community is Party to the World Health Organization’s Framework Convention on Tobacco Control (FCTC), different changes should be made in the matter. These changes should
  , where appropriate,
  take account of
  the smoking ban and
  the situation prevailing for each of the various tobacco products
  and should be complementary to the ban on tobacco advertising and to the launching of education campaigns. Account should also be taken of the need to fight against smuggling from third countries and organised crime and the establishment and enlargement of the Schengen area. |
| --- | --- |

(2)

In order to ensure the proper functioning of the internal market and, at the same time, a high level of health protection, as required by Article 152 of the EC Treaty, bearing in mind that the Community is Party to the World Health Organization’s Framework Convention on Tobacco Control (FCTC), different changes should be made in the matter. These changes should
  , where appropriate,
  take account of
  the smoking ban and
  the situation prevailing for each of the various tobacco products
  and should be complementary to the ban on tobacco advertising and to the launching of education campaigns. Account should also be taken of the need to fight against smuggling from third countries and organised crime and the establishment and enlargement of the Schengen area.

, where appropriate,

the smoking ban and

and should be complementary to the ban on tobacco advertising and to the launching of education campaigns. Account should also be taken of the need to fight against smuggling from third countries and organised crime and the establishment and enlargement of the Schengen area.

Amendment 2

Amendment 2

Proposal for a directive – amending act

Proposal for a directive – amending act

Recital 3

Recital 3

| (3) | As regards cigarettes, the arrangements should be simplified so as to create neutral conditions of competition for manufactures, to reduce the partitioning of the tobacco markets
  and
  to underscore health objectives. To this end, the concept of the most popular price category should be replaced; the
  price related
  minimum requirement
  should refer to the weighted average retail selling price, whereas the monetary minimum should be applicable to all cigarettes
  .
  For similar reasons
  , the weighted average retail selling price should
  also
  serve as a reference for measuring the importance of specific excise duty within the total tax burden. |
| --- | --- |

(3)

As regards cigarettes, the arrangements should be simplified so as to create neutral conditions of competition for manufactures, to reduce the partitioning of the tobacco markets
  and
  to underscore health objectives. To this end, the concept of the most popular price category should be replaced; the
  price related
  minimum requirement
  should refer to the weighted average retail selling price, whereas the monetary minimum should be applicable to all cigarettes
  .
  For similar reasons
  , the weighted average retail selling price should
  also
  serve as a reference for measuring the importance of specific excise duty within the total tax burden.

manufactures

and

price related

should refer to the weighted average retail selling price, whereas the monetary minimum should be applicable to all cigarettes

For similar reasons

also

| (3) | As regards cigarettes, the arrangements should be simplified so as to create neutral conditions of competition for manufacturers, to reduce the partitioning of the tobacco markets
  , to ensure equal treatment of all Member States, EU tobacco growers and tobacco industry,
  to underscore health objectives
  , and to comply with macroeconomic objectives, such as the low inflation target, in the light of the enlargement of the euro area and the convergence of prices
  . To this end, the concept of the most popular price category should be replaced; the minimum
  excise duty
  requirement
  for all tobacco products in all Member States should, by 1 January 2012, be expressed only as a specific component levied on each unit of tobacco
  . The weighted average retail selling price should serve
  only
  as a reference for measuring the importance of specific excise duty within the total tax burden.
  Member States with a high level of excise duty on tobacco products should adopt a policy of moderation as regards tax increase, bearing in mind the importance of convergence of the tax level within the internal market. |
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(3)

As regards cigarettes, the arrangements should be simplified so as to create neutral conditions of competition for manufacturers, to reduce the partitioning of the tobacco markets
  , to ensure equal treatment of all Member States, EU tobacco growers and tobacco industry,
  to underscore health objectives
  , and to comply with macroeconomic objectives, such as the low inflation target, in the light of the enlargement of the euro area and the convergence of prices
  . To this end, the concept of the most popular price category should be replaced; the minimum
  excise duty
  requirement
  for all tobacco products in all Member States should, by 1 January 2012, be expressed only as a specific component levied on each unit of tobacco
  . The weighted average retail selling price should serve
  only
  as a reference for measuring the importance of specific excise duty within the total tax burden.
  Member States with a high level of excise duty on tobacco products should adopt a policy of moderation as regards tax increase, bearing in mind the importance of convergence of the tax level within the internal market.

manufacturers

, to ensure equal treatment of all Member States, EU tobacco growers and tobacco industry,

, and to comply with macroeconomic objectives, such as the low inflation target, in the light of the enlargement of the euro area and the convergence of prices

excise duty

for all tobacco products in all Member States should, by 1 January 2012, be expressed only as a specific component levied on each unit of tobacco

only

Member States with a high level of excise duty on tobacco products should adopt a policy of moderation as regards tax increase, bearing in mind the importance of convergence of the tax level within the internal market.

Amendment 3

Amendment 3

Proposal for a directive – amending act

Proposal for a directive – amending act

Recital 5

Recital 5

| (5) | As regards fine-cut tobacco intended for the rolling of cigarettes, the Community minima should be expressed in such a way as to obtain effects similar to those in the field of cigarettes. To this end, it should be provided that national levels of taxation have to comply both with a minimum expressed as
  percentage of the retail price and one expressed as a fixed amount
  . |
| --- | --- |

(5)

As regards fine-cut tobacco intended for the rolling of cigarettes, the Community minima should be expressed in such a way as to obtain effects similar to those in the field of cigarettes. To this end, it should be provided that national levels of taxation have to comply both with a minimum expressed as
  percentage of the retail price and one expressed as a fixed amount
  .

percentage of the retail price and one expressed as a fixed amount

| (5) | As regards fine-cut tobacco intended for the rolling of cigarettes, the Community minima should be expressed in such a way as to obtain effects similar to those in the field of cigarettes. To this end, it should be provided that national levels of taxation have to comply with a minimum expressed as
  a fixed amount levied on each unit of tobacco by 1 January 2012
  . |
| --- | --- |

(5)

As regards fine-cut tobacco intended for the rolling of cigarettes, the Community minima should be expressed in such a way as to obtain effects similar to those in the field of cigarettes. To this end, it should be provided that national levels of taxation have to comply with a minimum expressed as
  a fixed amount levied on each unit of tobacco by 1 January 2012
  .

a fixed amount levied on each unit of tobacco by 1 January 2012

Amendment 7

Amendment 7

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 1 – point 1

Article 1 – point 1

Directive 92/79/EEC

Article 2 – paragraph 1 – subparagraph 1

1.   Member States shall ensure that excise duty
  (specific duty and ad valorem duty) on cigarettes represents at least 57 % of the weighted average retail selling price of cigarettes sold. That excise duty
  shall not be less than EUR 64 per 1 000 cigarettes
  irrespective of the weighted average retail selling price
  .

(specific duty and ad valorem duty) on cigarettes represents at least 57 % of the weighted average retail selling price of cigarettes sold. That excise duty

irrespective of the weighted average retail selling price

1.   
  By 1 January 2012,
  Member States shall ensure that excise duty shall not be less than EUR 64 per 1 000 cigarettes
  for all types of cigarettes
  .

By 1 January 2012,

for all types of cigarettes

Amendment 8

Amendment 8

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 1 – point 1

Article 1 – point 1

Directive 92/79/EEC

Article 2 – paragraph 2

2.   As from 1 January 2014, Member States shall ensure that excise duty
  (specific duty and ad valorem duty)
  on cigarettes
  represents at least 63 % of the weighted average retail selling price of cigarettes sold. That excise duty
  shall not be less than
  EUR 90
  per 1 000 cigarettes
  irrespective of the weighted average retail selling price
  .

(specific duty and ad valorem duty)

represents at least 63 % of the weighted average retail selling price of cigarettes sold. That excise duty

EUR 90

irrespective of the weighted average retail selling price

2.   As from 1 January 2014,
  all the
  Member States shall ensure that excise duty on
  all categories of
  cigarettes shall not be less than
  EUR 75
  per 1 000 cigarettes
  or EUR 8 more than the level per 1 000 cigarettes on 1 January 2010
  .

all the

all categories of

EUR 75

or EUR 8 more than the level per 1 000 cigarettes on 1 January 2010

However, Member States which levy an excise duty of at least EUR 122 per 1 000 cigarettes on the basis of the weighted average retail selling price need not comply with the 63 % requirement set out in the first subparagraph.

However, Member States which levy an excise duty of at least EUR 122 per 1 000 cigarettes on the basis of the weighted average retail selling price need not comply with the 63 % requirement set out in the first subparagraph.

Amendment 9

Amendment 9

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 1 – point 1

Article 1 – point 1

Directive 92/79/EEC

Article 2 – paragraph 3

3.   The weighted average retail selling price shall be determined at
  1 January
  of each year, by reference to the year n-1, on the basis of the total
  releases for consumption,
  and prices including all taxes.

1 January

releases for consumption,

3.   The weighted average retail selling price shall be determined at
  1 March
  of each year, by reference to the year n-1, on the basis of the total
  volume placed on the market
  and prices including all taxes.

1 March

volume placed on the market

Amendment 10

Amendment 10

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 1 – point 1

Article 1 – point 1

Directive 92/79/EEC

Article 2 – paragraph 5

5.   Member States shall gradually increase excise duties in order to reach the requirements referred to in
  paragraph 2 on the dates set in paragraphs 2 and 4 respectively
  .

paragraph 2 on the dates set in paragraphs 2 and 4 respectively

5.   Member States shall gradually increase excise duties in order to reach the requirements referred to in
  paragraph 1 by 1 January 2012
  .

paragraph 1 by 1 January 2012

Member States in which the excise duty applied on 1 January 2009 for any retail selling price category is higher than EUR 64 per 1 000 cigarettes shall not reduce their level of excise duty.

Member States in which the excise duty applied on 1 January 2009 for any retail selling price category is higher than EUR 64 per 1 000 cigarettes shall not reduce their level of excise duty.

Amendment 11

Amendment 11

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 1 – point 1

Article 1 – point 1

Directive 92/79/EEC

Article 2 – paragraph 6 – subparagraph 1 a (new)

The Commission shall calculate and publish, on the same occasion and for purposes of information, the EU floor price for cigarettes, expressed in euro or another national currency, adding the excise duty and VAT levied on a nominal packet of cigarettes of a value of EUR 0 pre-tax.

The Commission shall calculate and publish, on the same occasion and for purposes of information, the EU floor price for cigarettes, expressed in euro or another national currency, adding the excise duty and VAT levied on a nominal packet of cigarettes of a value of EUR 0 pre-tax.

Amendment 12

Amendment 12

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 1 – point 2

Article 1 – point 2

Directive 92/79/EEC

Article 2a

Article 2a is replaced by the following:

Article 2a is replaced by the following:

“Article 2a

1.
     
  Where a change in the weighted average retail selling price of cigarettes occurs in a Member State, thereby bringing the excise duty below the levels specified in paragraphs 1 and 2 of Article 2 respectively, the Member State concerned may refrain from adjusting that duty until no later than 1 January of the second year following that in which the change occurs.

2.
     
  Where a Member State increases the rate of value-added tax on cigarettes, it may reduce the excise duty up to an amount which, expressed as a percentage of the weighted average retail selling price, is equal to the increase in the rate of value added tax, also expressed as a percentage of the weighted average retail selling price, even if such an adjustment has the effect of reducing the excise duty to below the levels, expressed as a percentage of the weighted average retail selling price, laid down in paragraphs 1 and 2 of Article 2 respectively.

However, the Member State shall raise that duty again so as to reach at least those levels no later than 1 January of the second year after that in which the reduction took place.”

deleted

deleted

Amendment 13

Amendment 13

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 2 – point 1

Article 2 – point 1

Directive 92/80/EEC

Article 3 – paragraph 1 – subparagraphs 8 and 9

As from
  1 January 2010
  , Member States shall apply an excise duty on fine-cut smoking tobacco intended for the rolling of cigarettes of at least
  38 % of the retail selling price inclusive of all taxes, and at least EUR 43 per kilogram
  .

1 January 2010

38 % of the retail selling price inclusive of all taxes, and at least EUR 43 per kilogram

As from
  1 January 2014
  , Member States shall apply an excise duty on fine-cut smoking tobacco intended for the rolling of cigarettes of at least
  EUR 50 per kilogram or 6 % more than the level per kilogram on 1 January 2012
  .

1 January 2014

EUR 50 per kilogram or 6 % more than the level per kilogram on 1 January 2012

As from
  1 January 2014
  , Member States shall apply an excise duty on fine-cut smoking tobacco intended for the rolling of cigarettes of at least
  42 % of the retail selling price inclusive of all taxes, and at least EUR 60 per kilogram
  .

1 January 2014

42 % of the retail selling price inclusive of all taxes, and at least EUR 60 per kilogram

As from
  1 January 2012, Member States shall apply an excise duty on fine-cut smoking tobacco intended for the rolling of cigarettes of either at least
  EUR 43 per kilogram or 20 % more than the level per kilogram on 1 January 2010
  .

1 January 2012

EUR 43 per kilogram or 20 % more than the level per kilogram on 1 January 2010

Amendment 14

Amendment 14

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 2 – point 1

Article 2 – point 1

Directive 92/80/EEC

Article 3 – paragraph 1 – subparagraphs 10 and 11

Member States shall gradually increase excise duties in order to reach
  the
  new minimum requirements
  referred to in the ninth subparagraph on 1 January 2014
  .

the

referred to in the ninth subparagraph on 1 January 2014

Member States shall gradually increase excise duties in order to reach
  those
  new minimum requirements.

those

As from
  1 January 2010
  , the excise duty expressed
  as a percentage,
  as an amount per kilogram or for a given number of items shall be at least equivalent to the following:

1 January 2010

as a percentage,

As from
  1 January 2012
  , the excise duty expressed as an amount per kilogram or for a given number of items shall be at least equivalent to the following:

1 January 2012

| (a) | in the case of cigars or cigarillos
  , 5 % of the retail selling price inclusive of all taxes or
  EUR 12 per 1 000 items or per kilogram; |
| --- | --- |

(a)

in the case of cigars or cigarillos
  , 5 % of the retail selling price inclusive of all taxes or
  EUR 12 per 1 000 items or per kilogram;

, 5 % of the retail selling price inclusive of all taxes or

| (a) | in the case of cigars or cigarillos EUR 12 per 1 000 items or per kilogram; |
| --- | --- |

(a)

in the case of cigars or cigarillos EUR 12 per 1 000 items or per kilogram;

| (b) | in the case of smoking tobaccos, other than fine-cut smoking tobacco intended for the rolling of cigarettes,
  20 % of the retail selling price inclusive of all taxes, or
  EUR 22 per kilogram. |
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(b)

in the case of smoking tobaccos, other than fine-cut smoking tobacco intended for the rolling of cigarettes,
  20 % of the retail selling price inclusive of all taxes, or
  EUR 22 per kilogram.

20 % of the retail selling price inclusive of all taxes, or

| (b) | in the case of smoking tobaccos, other than fine-cut smoking tobacco intended for the rolling of cigarettes, EUR 22 per kilogram. |
| --- | --- |

(b)

in the case of smoking tobaccos, other than fine-cut smoking tobacco intended for the rolling of cigarettes, EUR 22 per kilogram.

Amendment 15

Amendment 15

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 3 – point 4 a (new)

Article 3 – point 4 a (new)

Directive 95/59/EC

Article 9 – paragraph 1 – subparagraph 3

| (4a) | In Article 9(1), the third subparagraph is replaced by the following:


  “The second paragraph may not, however, hinder implementation of national systems [...] regarding the control of price levels, the observance of imposed prices or the implementation by a Member State's competent authority of appropriate threshold price measures applicable to all tobacco products, in the context of that Member State's public health policy, in order to discourage tobacco consumption, especially by the young, provided that they are compatible with Community legislation.”. |
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(4a)

(4a)

In Article 9(1), the third subparagraph is replaced by the following:

“The second paragraph may not, however, hinder implementation of national systems [...] regarding the control of price levels, the observance of imposed prices or the implementation by a Member State's competent authority of appropriate threshold price measures applicable to all tobacco products, in the context of that Member State's public health policy, in order to discourage tobacco consumption, especially by the young, provided that they are compatible with Community legislation.”.

“The second paragraph may not, however, hinder implementation of national systems [...] regarding the control of price levels,

or the implementation by a Member State's competent authority of appropriate threshold price measures applicable to all tobacco products, in the context of that Member State's public health policy, in order to discourage tobacco consumption, especially by the young

Amendment 16

Amendment 16

Proposal for a directive – amending act

Proposal for a directive – amending act

Article 3 – point 5

Article 3 – point 5

Directive 95/59/EC

Article 16 – paragraph 1

1.   The specific component of the excise duty may not be less than 10 % and more than
  75 %
  of the amount of the total tax burden resulting from the aggregation of the following:

75 %

1.   The specific component of the excise duty may not be less than 10 %
  , as from 1 January 2012,
  and
  may not be
  more than
  55 %
  of the amount of the total tax burden resulting from the aggregation of the following:

, as from 1 January 2012,

may not be

55 %

| (a) | specific excise duty; |
| --- | --- |

(a)

specific excise duty;

| (a) | specific excise duty; |
| --- | --- |

(a)

specific excise duty;

| (b) | the proportional excise duty and the value added tax levied on the weighted average retail selling price. |
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(b)

the proportional excise duty and the value added tax levied on the weighted average retail selling price.

| (b) | the proportional excise duty and the value added tax levied on the weighted average retail selling price. |
| --- | --- |

(b)

the proportional excise duty and the value added tax levied on the weighted average retail selling price.

The average weighted retail selling price shall be determined at
  1 January
  of each year, by reference to the year n-1, on the basis of the total releases for consumption, and prices including all taxes.

1 January

The average weighted retail selling price shall be determined at
  1 March
  of each year, by reference to the year n-1, on the basis of the total releases for consumption, and prices including all taxes.

1 March

1a.
     
  The specific component of the excise duty shall not be less than 10 % as from 1 January 2014 and shall not be more than 60 % of the amount of the total tax burden resulting from the aggregation of the following:

1a.

The specific component of the excise duty shall not be less than 10 % as from 1 January 2014 and shall not be more than 60 % of the amount of the total tax burden resulting from the aggregation of the following:

| (a) | specific excise duty; and |
| --- | --- |

(a)

(a)

specific excise duty; and

specific excise duty; and

| (b) | the proportional excise duty and the value added tax levied on the weighted average retail selling price. |
| --- | --- |

(b)

(b)

the proportional excise duty and the value added tax levied on the weighted average retail selling price.

the proportional excise duty and the value added tax levied on the weighted average retail selling price.

The average weighted retail selling price shall be determined at 1 March of each year, by reference to the year n-1, on the basis of the total releases for consumption, and prices including all taxes.

The average weighted retail selling price shall be determined at 1 March of each year, by reference to the year n-1, on the basis of the total releases for consumption, and prices including all taxes.

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