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"B COUNCIL DIRECTIVE 92/79/EEC
of 19 October 1992
on the approximation of taxes on cigarettes
(OJ L 316, 31.10.1992, p. 8)
Amended by:
Official Journal
No page date
"M1 Council Directive 1999/81/EC of 29 July 1999 L 211 47 11.8.19991992L0079 — EN — 01.01.1999 — 001.001 — 1
COUNCIL DIRECTIVE 92/79/EEC
of 19 October 1992
on the approximation of taxes on cigarettes
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 99 thereof,
Having regard to the proposal from the Commission (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Economic and Social Committee (3),
Whereas Directive 72/464/EEC (4) lays down general provisions concerning
excise duties on manufactured tobacco and special provisions concerning thestructure of excise duties applicable to cigarettes;
Whereas Directive 79/32/EEC (
5) laid down the definitions of the various
groups of manufactured tobacco;
Whereas for the completion on 1 January 1993 of an internal market without
frontiers it is necessary to establish an overall minimum excise duty for
cigarettes;
Whereas it is necessary for the Kingdom of Spain to have a transitional period
of two years in order to attain that overall minimum excise duty;
Whereas the Portuguese Republic should be granted the possibility of a
reduced rate for cigarettes made by small-scale producers and consumed in
the most remote regions of the Azores and Madeira;
Whereas a procedure should be introduced so that, as regards the overall
incidence and the structure of excise duties on cigarettes, it will be possible
every two years to make the adjustments necessary to take account of the
proper functioning of the internal market and the wider objectives of theTreaty,
HAS ADOPTED THIS DIRECTIVE:
Article 1
1. Not later than 1 January 1993, Member States shall apply to cigarettes
minimum consumption taxes in accordance with the rules provided for in thisDirective.
2. Paragraph 1 shall apply to the taxes which, pursuant to Directive
72/464/EEC, are levied on cigarettes and which comprise:
(a) a specific excise duty per unit of the product;
(b) a proportional excise duty calculated on the basis of the maximum retail
selling price;
(c) a V AT proportional to the retail selling price.
Article 2
Not later than 1 January 1993, each Member State shall apply an overall
minimum excise duty (specific duty plus ad valorem duty excluding V AT) the
incidence of which shall be set at 57 % of the retail selling price (inclusive of
all taxes) for cigarettes of the price category most in demand.
The overall minimum excise duty on cigarettes shall be determined on the
basis of cigarettes of the price category most in demand according to data
established as at 1 January of each year, beginning on 1 January 1993.!B
(1) OJ No C 12, 18. 1. 1990, p. 4.
(2) OJ No C 94, 13. 4. 1992, p. 35.
(3) OJ No C 225, 10. 9. 1990, p. 56.
(4) OJ No L 303, 31. 12. 1972, p. 1. Last amended by Directive 92/78/EEC, (see page
5 of this Official Journal).
(5) OJ No L 10, 16. 1. 1979, p. 8.1992L0079 — EN — 01.01.1999 — 001.001 — 2
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Article 2a
1. When a change in the retail selling price of cigarettes in the most popular
price category occurs in a Member State, thereby bringing the incidence of the
overall minimum excise duty below the level specified in the first
subparagraph of Article 2, the Member State in question may refrain fromadjusting the incidence of the overall minimum excise duty until not later than1 January of the second year following that in which the change occurs.
2. When a Member State increases the rate of value-added tax on cigarettes,
it may reduce the incidence of the overall minimum excise duty up to anamount which, expressed as a percentage of the retail selling price, is equal tothe incidence of the increase in the rate of value added tax, also expressed as a
percentage of the retail selling price, even if such an adjustment has the effect
of reducing the incidence of the overall minimum excise duty to below thelevel laid down in Article 2.
3. If, in accordance with paragraph 2, a Member State reduces the incidence
of the overall minimum excise duty to a level below that laid down in the first
subparagraph of Article 2, it shall raise that incidence so as to reach at least
that level not later than 1 January of the second year after that in which thereduction took place.
Article 3
1. The Kingdom of Spain shall have a transitional period of two years,
starting on 1 January 1993, to attain the overall minimum excise duty laiddown in Article 2.
2. The Portuguese Republic may apply a reduced rate of up to 50 % less
than that laid down in Article 2 to cigarettes consumed in the most remote
regions of the Azores and Madeira, made by small-scale manufacturers eachof whose annual production does not exceed 500 tonnes.
3. Notwithstanding Article 2, the Kingdom of Sweden may postpone, up to
and including 31 December 2002, the application of an overall minimumexcise duty equivalent to 57 % of the retail selling price (inclusive of all taxes)
of cigarettes in the most popular price category. In addition, the Kingdom of
Sweden may not reduce the overall excise duty below the level applied on 1August 1998.
4. Up to and including 31 December 2002, the French Republic may apply
for cigarettes sold on the island of Corsica the same rates as those in force on
31 December 1997.
Article 4
Not less frequently than every three years, and for the first time not later than
31 December 2000, the Council, acting on the basis of a report and, where
appropriate, a proposal from the Commission, shall examine the overall
minimum excise duty laid down in Article 2 and in Article 3(2) and thestructure of excise duties as defined by Article 16 of Council Directive95/59/EC of 27 November 1995 on taxes other than turnover taxes which
affect the consumption of manufactured tobacco (
1) and, acting unanimously
after consulting the European Parliament, shall adopt the necessary measures.The report by the Commission and the examination by the Council shall take
into account the proper functioning of the internal market and the wider
objectives of the Treaty.
Article 5
1. Member States shall bring into force the laws, regulations and
administrative provisions necessary to comply with this Directive not later
than 31 December 1992. They shall forthwith inform the Commission thereof.
When Member States adopt these measures, they shall contain a reference to
this Directive or shall be accompanied by such reference on the occasion oftheir official publication. The methods of making such reference shall be laid
down by the Member States.
(1) OJ L 291, 6.12.1995, p. 40.!B
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!B1992L0079 — EN — 01.01.1999 — 001.001 — 3
2. Member States shall communicate to the Commission the texts of the
main provisions of national law which they adopt in the field governed by thisDirective.
Article 6
This Directive is addressed to the Member States.!B1992L0079 — EN — 01.01.1999 — 001.001 — 4