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. (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.

Amendment 2

Proposal for a directive – amending act 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 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.

Amendment 3

Proposal for a directive – amending act 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 with a minimum expressed as a fixed amount levied on each unit of tobacco by 1 January 2012 .

Amendment 7

Proposal for a directive – amending act 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 . 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 .

Amendment 8

Proposal for a directive – amending act 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 . 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 .

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

Proposal for a directive – amending act 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. 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.

Amendment 10

Proposal for a directive – amending act 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 . 5. Member States shall gradually increase excise duties in order to reach the requirements referred to in 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.

Amendment 11

Proposal for a directive – amending act 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.

Amendment 12

Proposal for a directive – amending act Article 1 – point 2 Directive 92/79/EEC Article 2a

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

Amendment 13

Proposal for a directive – amending act 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 . 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 .

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 . 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 .

Amendment 14

Proposal for a directive – amending act 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 . Member States shall gradually increase excise duties in order to reach those new minimum requirements.

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: 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:

(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 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. (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

Proposal for a directive – amending act 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.”.

Amendment 16

Proposal for a directive – amending act 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: 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:

(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. (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. 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.

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

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