19.9.87 Official Journal of the European Communities No C 251/3 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Directive on the approximation of taxes on cigarettes 
COM(87) 325 final 12 
(Submitted by the Commission to the Council on 7 August 1987) 
(87/C 251/03) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, HAS ADOPTED THIS DIRECTIVE: 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 99 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Council Directive 72/464/EEC (*), as last 
amended by Directive 86/246/EEC (2), lays down 
general provisions relating to excise duties on manu­
factured tobacco and special provisions relating to the 
structure of excise duties applicable to cigarettes; 
Whereas Council Directive 79/32/EEC (3) lays down the 
definitions of the different types of manufactured 
tobacco; 
Whereas, in the case of cigarettes, harmonization, as 
provided for in Directive 72/464/EEC, of the ratio 
between the specific excise duty and the sum of the 
proportional excise duty and VAT does not make it 
possible to harmonize the rates of taxation; 
Whereas, for the purpose of establishing an internal 
market without frontiers, it is necessary to bring more 
closely together the rates of taxes on consumption; 
Whereas, in the case of cigarettes, those taxes are made 
up of a mixed excise duty and VAT; whereas they 
display special characteristics, notably as regards their 
cumulative and multiplier effects; whereas therefore, all 
the components of those taxes should be harmonized, Article 1 
Not later than 31 December 1992, Member States shall 
apply to cigarettes approximated taxes on consumption 
subject to the conditions and within the limits laid down 
in this Directive. 
This provision 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 
Not later than 31 December 1992, each Member State 
shall apply 
(a) a specific excise duty, the basic amount of which is 
fixed at 19,5 ECU per 1 000 cigarettes and which is 
to be adjusted in line with the general consumer 
price index in the Community, taking 1987 as the 
reference year; 
(b) a proportional excise duty the rate of which is to be 
fixed in such a way that the combined incidence of 
this rate and the VAT rate lies between 52 % and 
54 % of the retail selling price inclusive of all taxes. 
Article 3 
The provisions governing the periodic adjustment of the 
rate of the specific excise duty and the provisions 
governing the arrangements for collecting tax and the 
time allowed for payment of tax shall be laid down 
before 1 January 1989 in Directives adopted by the 
Council acting on proposals from the Commission. 
(») OJ No L 303, 31. 12. 1972, p. 1. 
(») OJ No L 164, 20. 6. 1986, p. 26. 
(») OJNoLlO, 16. 1. 1979, p. 9. Article 4 
Article 1, Article 4(3) and (4), and Titles II and Ha of 
Directive 72/464/EEC shall cease to apply once Member 
No C 251 /4 Official Journal of the European Communities 19.9.87 
States have brought into force the national provisions 
necessary to comply with this Directive. 
Article 5 
Member States shall bring into force the laws, regu­
lations and administrative provisions necessary to comply 
with this Directive not later than 31 December 1992. They shall forthwith inform the Commission of any 
provisions of national law which they adopt in the field 
governed by this Directive. 
Article 6 
This Directive is addressed to the Member States. 
Proposal for a Council Directive on the approximation of taxes on manufactured tobacco other 
than cigarettes 
COM(87) 326 final I 2 
(Submitted by the Commission to the Council on 7 August 1987) 
(87/C 251/04) 
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, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Council Directive 72/464/EEC ('), as last 
amended by Directive 86/246/EEC (2), sets out in Title I 
general provisions relating to excise duties applicable to 
all groups of manufactured tobacco; whereas special 
provisions relating to cigarettes have already been 
adopted in Title II of that Directive; whereas special 
provisions still have to be adopted for other manu­
factured tobacco products; 
Whereas Council Directive 79/32/EEC (3) lays down the 
definitions of the different types of manufactured 
tobacco; 
Whereas, in order to establish an internal market without 
frontiers, the structures of excise duties and VAT need 
to be harmonized and their rates brought more closely 
into line; 
Whereas in the case of manufactured tobacco other than 
cigarettes, an excise duty structure proportional to the 
retail selling prices is 
achieving that objective; the structure best suited to 
O OJ No L 303, 31. 12. 1972, p. 1. 
(2) OJ No L 164, 20. 6. 1986, p. 26. 
(») OJNoL 10, 16. 1. 1979, p. 8. Whereas a proportional excise duty displays special char­
acteristics, notably with regard to its multiplier effect in 
combination with VAT; whereas, therefore, the 
incidence of the sum of the rates of those two taxes 
should be harmonized as a proportion of the retail 
selling prices of the products in question; 
Whereas the incidence of taxation should be harmonized 
in the case of all products belonging to the same group 
of manufactured tobacco, 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 
The following groups of home-produced and imported 
manufactured tobacco shall be subject, in each Member 
State, to an ad valorem excise duty calculated on the 
basis of the maximum retail selling price of each product, 
freely determined by manufacturers and importers in 
accordance with Article 5 of Directive 72/464/EEC: 
(a) cigars and cigarillos; 
(b) smoking tobacco; 
(c) chewing tobacco; 
(d) snuff. 
Article 2 
For the purposes of this Directive, the definitions of the 
products referred to in Article 1 shall be those laid down 
in Articles 2, 4, 5, 6 and 7 respectively of Directive 
79/32/EEC. 
Article 3 
1. Not later than 31 December 1992, each Member 
State shall apply an ad valorem rate of excise duty in 
such a way that the total tax burden resulting from the 
combination of the excise duty and VAT is: