1992L0079 — EN — 08.03.2002 — 002.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►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:
OfficialJournal
No page date
►M1 CouncilDirective 1999/81/EC of 29 Jul y 1999 L 211 47 11.8.1999
►M2 CouncilDirective 2002/10/EC of 12 February 2002 L 46 26 16.2.2002
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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 proposalfrom 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 specialprovi-
sions concerning the structure 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 exciseduty 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 andconsumed 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, itwill be possible every two years to make the adjustments necessary totake account of the proper functioning of the internalmarket and thewider objectives of the Treaty,
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 this Directive.
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 VAT proportional to the retail selling price.
Article 2
1. Each Member State shall apply an overall minimum excise duty
(specific duty plus ad valorem duty excluding VAT), the incidence of
which shall be set at 57 % of the retail selling price (inclusive of alltaxes) and which shall not be less than EUR 60 per 1 000 cigarettes1992L0079 — EN — 08.03.2002 — 002.001 — 2
(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 OfficialJournal ).
(5) OJ No L 10, 16. 1. 1979, p. 8.▼M2
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for cigarettes of the price category most in demand. As from 1 July
2006, the figure of ‘EUR 60’ shall be replaced by ‘EUR 64’.
2. Member States which levy an overall minimum excise duty of at
least EUR 95 per 1 000 cigarettes for cigarettes of the price categorymost in demand need not comply with the 57 % minimum incidencerequirement. As from 1 July 2006 the figure of ‘EUR 95’ shall bereplaced by ‘EUR 101’.
3. The overall minimum excise duty on cigarettes shall be deter-
mined on the basis of cigarettes of the price category most in demandaccording to data established as at 1 January of each year.
4. Notwithstanding paragraph 1, Member States which on 1 July
2001 applied an overall minimum excise duty less than EUR 60 per1 000 cigarettes for cigarettes of the price category most in demand,may postpone up to and including 31 December 2004 the applicationof an overall minimum excise duty of EUR 60 per 1 000 cigarettes
for cigarettes of the price category most in demand.
5. The value of the euro in national currencies to be applied to the
amounts of the overall minimum excise duty shall be fixed once a year.The exchange rates to be applied shall be those obtained on the first
working day of October and published in the Official Journal of the
European Communities and shall have effect from 1 January of the
following calendar year.
6. By way of derogation from the preceding paragraph, Member
States which have not adopted the euro shall be authorised to apply
the value of the euro in national currency on the first working day ofOctober 2000 for the conversion of the amount of EUR 95 referred toin paragraph 2. The present derogation shall be re-examined in the nextreport to be submitted by the Commission in accordance with Article 4.
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 theincidence of the overall minimum excise duty below the level specifiedin the first subparagraph of Article 2, the Member State in questionmay refrain from adjusting the incidence of the overall minimum
excise duty until not later than 1 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 an amount which, expressed as a percentage of the retail
selling price, is equal to the incidence of the increase in the rate ofvalue added tax, also expressed as a percentage of the retail sellingprice, even if such an adjustment has the effect of reducing the inci-dence of the overall minimum excise duty to below the level 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 thatlaid down in the first subparagraph of Article 2, it shall raise that inci-
dence so as to reach at least that level not later than 1 January of the
second year after that in which the reduction 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 exciseduty laid down 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 mostremote regions of the Azores and Madeira, made by small-scale manu-facturers each of whose annualproduction does not exceed 500 tonnes.1992L0079 — EN — 08.03.2002 — 002.001 — 3
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3. Notwithstanding Article 2, the Kingdom of Sweden may post-
pone, up to and including 31 December 2002, the application of anoverall minimum excise 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 theoverall excise duty below the level applied on 1 August 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 asthose in force on 31 December 1997.
Article 4
Every four years, the Commission shall submit to the Council a report
and, where appropriate, a proposalconcerning the rates of excise duty
laid down herein and the structure of excise duties as defined byArticle 16 of Council Directive 95/59/EC of 27 November 1995 ontaxes other than turnover taxes which affect the consumption of manu-factured tobacco (
1). The Councilshal lexamine this report and this
proposal and, acting unanimously after consulting the European Parlia-
ment, shall adopt the necessary measures. The report by theCommission and the examination by the Councilshal ltake intoaccount the proper functioning of the internalmarket, the realval ueof the levels of excise duty in Article 2 calculated solely in accordancewith inflation 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 Commis-sion thereof.
When Member States adopt these measures, they shall contain a refer-
ence to this Directive or shall be accompanied by such reference on theoccasion of their officialpubl ication. The methods of making such
reference shall be laid down by the Member States.
2. Member States shall communicate to the Commission the texts of
the main provisions of national law which they adopt in the fieldgoverned by this Directive.
Article 6
This Directive is addressed to the Member States.1992L0079 — EN — 08.03.2002 — 002.001 — 4
(1) OJ L 291, 6.12.1995, p. 40. Directive as amended by Directive 1999/81/EC
(OJ L 211, 11.8.1999, p. 47).▼M2
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