No C 109/36 Official  Journal  of the European  Communities 19. 9. 74 
3. As  a result,  taxation  on the  basis  of Article  5 
(2) of the Directive  of 17 July  1969  should  only  be 
charged  on  operations  which  genuinely  help  to 
increase  the  economic  potential  of the  company, 
this being  the principle  on which  the levying  of the 
harmonized  capital  duty  is based. 
4. It  is desirable  to avoid  making  use of measures 
which  are  liable  to create  obstacles  to increases  in 
the capital  of companies  and  — by the same  token 
— to their  development. 
5. In  this  connection,  the  Committee  points  out 
that in its  Opinion  (x) on  the  'Proposal  for  a 
Council  Directive  concerning  indirect  taxes  on the 
raising  of capital',  it came  out  in favour  of deleting 
the provision  made  in Article  5 (2) of this  proposal. 
The Committee  commented  that  this  provision  was 
justified  regardless  of whether  the  basis  for levying 
(*) OJ  No  134,  23. 7.1965,  p. 2227/65. capital  duty  was  taken  to be the actual  value  or the 
agreed  value  of the assets.  The  duty  must  be levied 
on the  capital  contribution  made  and  not  on the 
value  of the securities  issued  in exchange. 
6. The  Committee  also  stressed  that  one  of the 
results  of this  provision  would  be to tax  the  value 
of subscription  rights. 
7. On  a more  general  level,  the Committee  would 
also point  out  that  in the aforementioned  Opinion, 
it advocated  the  abolition  of indirect  taxes  on the 
raising  of capital  since  such  taxes  are  no longer 
justifiable  in a rational  tax system. 
Done  at Brussels,  29 May  1974. 
The Chairman 
of the 
Economic  and  Social  Committee 
Alfons  LAPP  AS 
OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
on the proposal  for a third  Council  Directive  on taxes  other  than  turnover  taxes  which 
affect  the consumption  of manufactured  tobacco 
The text  referred  to the Committee  has  been  published  in the Official  Journal  of the 
European  Communities  No  C 52 of 7 May  1974,  page  9. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its meeting,  held  on 8 April  1974,  the  Council  referred  the  abovementioned 
proposal  for  a Directive  to the  Economic  and  Social  Committee  in accordance  with 
Articles  99 and 100  of the Treaty  establishing  the European  Economic  Community. 
The request  for  an Opinion  was  sent  by the  Council  to the  Economic  and  Social 
Committee  on 9 April  1974. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the above  matter  at its 
12Qth  Plenary  Session,  held  in Brussels  on 29 and  30 May  1974. 
The full  text  of the Opinion  is as follows  : 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the Euro-
pean  Economic  Community,  and  in particular  Arti-
cles 99, 100  and  198  thereof; 
Having  regard  to the  request,  dated  9 April  1974, 
from  the Council  of the European  Communities  for an Opinion  on the  proposal  for  a third  Council 
Directive  on taxes  other  than  turnover  taxes  which 
affect  the consumption  of manufactured  tobacco  ; 
Having  regard  to its Rules  of Procedure  and  in parti-
cular  Article  22 thereof; 
19. 9. 74 Official  Journal  of the  European  Communities No C 109/37 
Having  regard  to  the  Decision  taken  by  its 
Chairman  on 25 April  1974  instructing  the  Section 
for Economic  and  Financial  Questions  to prepare 
an Opinion  on the  matter  ; 
Having  regard  to  the  Opinion  delivered  by  the 
Section  for  Economic  and  Financial  Questions  at its 
meeting  of 7 May  1974  ; 
Having  regard  to the  oral  report  submitted  by Mr 
Friedrichs,  the Rapporteur  ; 
Having  regard  to  the  discussions  at  its  120th 
Plenary  Session,  held  on  29  and  30  May  1974 
(sitting  of 29 May), HAS  ADOPTED  THE  FOLLOWING  OPINION  : 
The Economic  and  Social  Committee  approves  the 
Commission's  proposal  for  a Directive  extending  by 
one year,  to 30  June  1976,  the  first  stage  in the 
harmonization  of taxes  on  manufactured  tobacco, 
in order  to  permit  further  consideration  of  the 
conditions  in the  market  in manufactured  tobaccos 
in the enlarged  Community. 
Done  at Brussels,  29 May  1974. 
The Chairman 
of the 
Economic  and  Social  Committee 
Alfons  LAPPAS 
OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
on the  Communication  from  the  Commission  to the  Council  on the  creation  of the 
European  Foundation  for the Improvement  of Living  and  Working  Conditions 
The text  of the  draft  (part  of the  abovementioned  communication)  has  been  published 
in the  Official  Journal  of  the  European  Communities  No  C 35 of 28 March  1974, 
page  5. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its meeting,  held  on 21 December  1973,  the  Council  referred  the  abovementioned 
proposal  for  the abovementioned  communication  to the Economic  and  Social  Committee 
on an optional  basis. 
The request  for  an Opinion  was  sent  by the  Council  to the  Economic  and  Social 
Committee  on 21 December  1973. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the  above  matter  at its 
120th  Plenary  Session,  held  in Brussels  on 29 and  30 May  1974. 
The full  text  of the  Opinion  is as follows  : 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  request,  dated  21 March  1973, 
from  the  Council  of the  European  Communities  for 
an Opinion  on  the  Communication  from  the 
Commission  to the  Council  on  the  creation  of a 
European  Foundation  for  the  Improvement  of 
Living  and  Working  Conditions  (and  the  accompan-
ying  proposal  for a Council  Regulation)  ; 
Having  regard  to the  Decision  taken  by the  Bureau 
of the  Economic  and  Social  Committee  on  29 
January  1974  entrusting  the  Section  for  Protection of the  Environment,  Public  Health  and  Consumer 
Affairs  with  the  preparation  of an Opinion  on the 
matter  ; 
Having  regard  to Article  198  of the  Treaty  esta-
blishing  the  European  Economic  Community  ; 
Having  regard  to the  Supplementary  Opinion  of the 
Section  for Social  Questions  ; 
Having  regard  to  the  Opinion  delivered  by  the 
Section  for  Protection  of the  Environment,  Public 
Health  and  Consumer  Affairs  at its meeting  on 13 
May  1974  ;