22. 1. 76 Official  journal  of the European  Communities No C 15/17 
6.15.  The  annual  report  proposes  guidelines  to be Council  has  taken  its  decision,  the  individual 
followed  by the  individual  Member  States  in their  governments  will  be capable  of implementing  it in 
economic  policy.  The  Council  is asked  to approve  such  a way  that  the  results  will  this  time  exceed 
these  guidelines.  The  Committee  trusts  that  once  the expectations. 
Done  at Brussels,  30 October  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the  proposal  for a Council  Directive  amending  Directive  72/464/EEC  on 
taxes  other  than  turnover  taxes  which  affect  the consumption  of manufactured  tobacco 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 150  of 5 July  1975,  page  4. 
On 27 June  1975,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  100  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
134th  plenary  session,  held  in Brussels  on 29 and  30 October  1975. 
The full  text  of the opinion  is as follows: A. LEGAL  BASIS  FOR  THE  OPINION 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, Having  regard  to earlier  Committee  opinions  on the 
harmonization  stages  for  indirect  taxes  on 
manufactured  tobaccos, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  100  thereof, Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr O'Ceallaigh, 
Having  regard  to the request  for an opinion  made  by 
the Council  on 27 June  1975, Having  regard  to the  opinion  issued  by the Section 
for Economic  and  Financial  Questions  at its meeting 
on 30 September  1975, 
Having  regard  to the decision  taken  by its Chairman 
on 24 June,  instructing  the Section  for Economic  and 
Financial  Questions  to draw  up an opinion  on the 
matter, Having  regard  to the discussions  at its 134th  plenary 
session,  held  on 29 and  30 October  1975  (meeting  of 
29 October), 
No C 15/18 Official  Journal  of the  European  Communities 22.1.  76 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by unanimous  vote: 
1. General  observations 
1.1. Under  Council  Directive  72/464/EEC  of 19 
December  1972,  as  amended  by  Directive 
74/318/EEC  of 25 June  1974,  the  Council  was  to 
adopt,  before  1 July  1975,  a Directive  laying  down 
the special  criteria  applicable  during  the second  stage 
of the harmonization  of the structure  of excise  duties 
on manufactured  tobacco.  Having  thus  laid  down 
these  special  criteria,  they  were  to have  come  into 
force  on 1 July  1976. 
1.2. In  the first  stage  of harmonization,  under  the 
abovementioned  Directive  of 19  December  1972, 
Article  8 (2) determined  the  criteria  for  the  ratios 
between  the  specific  component  and  the 
proportional,  or ad valorem,  component  of the excise 
duty  applicable  to cigarettes. 
1.3. The  main  objective  of the  second  stage  is to 
fix narrower  ranges  for  these  ratios  as part  of the 
programme  of fiscal  harmonization. 
1.4. As  far  as  the  excise  duty  on  other 
manufactured  tobacco  is concerned,  the  basic 
structure  of the excise  duty  has still  to be determined. 
1.5. Even  during  the  preparatory  work  for  this 
programme  of harmonization,  it became  obvious 
that,  because  of the  wide  divergence  of fiscal, 
production  and  marketing  practices  in the  Member 
States,  it would  be necessary  to reach  agreement  on 
the problem  of defining  the  various  groups  of 
manufactured  tobacco  before  drawing  up proposals 
for further  stages  of harmonizing  the  structure  of 
excise  duties. 
1.6. This  fundamental  problem  of definition  was 
the basis  of the  proposal  for a second  Directive  on 
taxes,  other  than  turnover  taxes,  which  affect  the 
consumption  of manufactured  tobacco  (*), of 22 
March  1974.  The  Committee  delivered  its opinion  on 
the proposal  (2) in July  1974.  The  Parliament 
delivered  its opinion  (3) in November  1974.  The 
Council  has yet to adopt  this  second  Directive. 
1.7. Even  with  such  a decision  by the  Council, 
major  problems  will  still  remain.  It has  become 
OJ No C 72, 27. 6. 1974,  p. 15. 
(2) OJ  No C 125,  16. 10. 1974,  p. 38. 
(3) OJ  No C 155,  9. 12. 1974,  p. 73. apparent  during  the  preparatory  work,  that  views 
differ  widely  as to what  is, in fact,  the  desirable 
structure  of the excise  duty  on cigarettes. 
1.8. This  is why  the  Commission  felt  obliged  to 
send  a letter  to the  Council  on  23  June  1975, 
accompanying  its proposal  for a Decision  prolonging 
the first  stage.  This  letter  points  out  that  the  even 
greater  variations  in the market  conditions  following 
the enlargement  of the Community,  have  made  it yet 
more  difficult  to lay  down  acceptable  criteria  for 
harmonizing  the  structures  of  excise  duty  on 
manufactured  tobacco. 
1.9. Therefore,  the  Commission  stated  in its 
submission  to the Council,  on 11 June  1975  that  there 
was no realistic  possibility  of adopting  the necessary 
Decisions  by 1 July  1975,  as required  by the earlier 
Directives  (19 December  1972  and  25 June  1974). 
1.10.  The  Commission,  therefore,  proposed  to 
extend  the  first  stage  of harmonization  for  yet  a 
further  year.  In effect,  this  would  postpone  the 
implementation  of the second  stage  from  1 July  1976 
to 1 July  1977. 
2. Specific  observations 
2.1. The  Committee  approves  the draft  Directive, 
subject  to the following  comments: 
2.1.1.  The  Committee  sees  the  harmonization 
of indirect  taxation  as a vital  element  in progress 
towards  economic  and  monetary  union.  In view  of 
the importance  of tobacco  as a source  of revenue  in 
all member  countries,  harmonization  in this  field  is of 
particular  importance. 
2.1.2.  The  Committee  regrets  that  it has  been 
found  necessary  to propose  a further  prolongation  of 
the first  stage  of harmonization,  but accepts  that  this 
prolongation  is necessary  for practical  reasons. 
2.1.3.  The  Committee  is, however,  apprehensive  of 
the possibility  of further  delays  arising  from  the 
Commission's  suggestion  that  further  examinations 
be made  of the  conditions  on  the  markets  in 
manufactured  tobacco  in the enlarged  Community. 
2.1.4.  It  recognizes,  however,  that  in view  of the 
difficulties  already  encountered  in preparing  for 
transition  to the second  stage,  it may  be necessary  to 
have  some  further  studies  and  consultations  in an 
endeavour  to bring  about  more  rapid  progress  in the 
harmonization  programme  against  the  broader 
22.1.76 Official  Journal  of the  European  Communities No C 15/19 
background  of the  problem  of harmonizing  indirect 
taxation  as a whole.  This  should  be done  as rapidly 
as possible. 
2.1.5.  The  Committee  strongly  urges  that:  (i) the 
Council  adopt  the second  Directive,  currently  before it, without  delay;  (ii) the Commission  presents  early 
proposals  for  the  second  stage  of  fiscal 
harmonization  so that  the  Economic  and  Social 
Committee  and  European  Parliament  may  be able  to 
draw  up their  opinions  in good  time  and  the Council 
take the final  decision  before  1 July  1976. 
Done  at Brussels,  29 October  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the  proposal  from  the Commission  to the  Council  entitled  'Biology  and 
Health  Protection  Programme  — Research  Programme  1976/80' 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 222  of 29 September  1975,  page  122. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 7 August  1975,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  170  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
134th  plenary  session,  held  in Brussels  on 29 and  30 October  1975. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the request  for an opinion  made  by 
the Council  on 7 August  1975, 
Having  regard  to  the  Treaty  establishing  the 
European  Atomic  Energy  Community,  and  in 
particular  Article  170  thereof, 
Having  regard  to the decision  taken  by its Bureau  on 
23 September  1975  instructing  the Section  for Energy 
and Nuclear  Questions  to draw  up an opinion  and  a 
report  on the matter, Having  regard  to the opinion  adopted  by the Section 
for Energy  and  Nuclear  Questions  at its meeting  on 
3 October  1975, 
Having  regard  to the  oral  report  submitted  by the 
Rapporteur,  Mr Noordwal,  at this  meeting, 
Having  regard  to the discussions  at its 134th  plenary 
session  held  on 29 and  30 October  1975  (meeting  of 
29 October), 
Whereas  the development  of nuclear  energy  gives  rise 
to the  need  for  ever  closer  study  of radiation