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: 
19.9. 87 Official Journal of the European Communities No C 251/5 
for cigars and cigarillos: 
between 34 % and 36 % 
for smoking tobacco: 
between 54 % and 56 % 
for snuff and chewing tobacco: 
between 41 % and 43 % of the retail 
selling price 
inclusive of all 
taxes. 
2. These rates shall be effective for all products 
belonging to the group of manufactured tobacco 
concerned, without distinction within that group as to 
quality, presentation, origin of the products, the 
materials used, the characteristics of the firms involved 
or any other criterion. 
Article 4 
The provisions relating to the arrangements for 
collecting the duty and the time allowed for payment shall be laid down before 1 January 1989 in Directives 
adopted by the Council acting on proposals from the 
Commission. 
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.