24.11.  76 Official  Journal  of the European  Communities No C 278/11 
Opinion  on the proposal  for a Sixth  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  has  been  published  in Official  Journal  of the 
European  Communities  No  C 168  of 27 July  1976,  page  7. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 15 July  1976,  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 
141st  plenary  session,  held  in Brussels  on 29 and  30 September  1976. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  and  in particular  Article  100 
thereof, 
Having  regard  to the request  made  by the Council  of 
the European  Communities  on 15 July  1976  for an 
opinion, 
Having  regard  to the decision  taken  by its Chairman 
on 20 July  1976,  instructing  the Section  for Economic 
and Financial  Questions  to prepare  an opinion  on the 
matter. 
Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr O'Ceallaigh, 
Having  regard  to the  opinion  issued  by the Section 
for Economic  and  Financial  Questions  at its meeting 
on 31 August  1976, 
Having  regard  to the discussions  at its 141st  plenary 
session,  held  on 29 and  30 September  1976  (meeting 
of 29 September  1976). 
HAS  ADOPTED  BY  A UNANIMOUS  VOTE:  THE 
FOLLOWING  OPINION 1. Background 
1.1. Harmonization  of indirect  taxation  is an 
essential  element  in progress  towards  economic  and 
monetary  union.  In view  of the  importance  of 
tobacco  as a source  of revenue  and  of the  present 
obstacles  to intra-Community  trade  in manufactured 
tobacco,  harmonization  of taxes  which  affect  the 
consumption  of  manufactured  tobacco  is  of 
particular  importance. 
1.2. The  process  of harmonization  was  initiated  by 
a Council  resolution  of 21 April  1970.  As regards 
cigarettes,  this  resolution  provided  that  the 
harmonized  structure  should  consist,  in part,  of an 
element  proportional  to retail  prices  and,  in part,  of a 
specific  element.  These  provisions  were  embodied  in 
Council  Directive  72/464/EEC  of 19 December  1972. 
1.3. The  first  stage,  which  originally  should  have 
ended  on 30 June  1975  has,  for various  reasons,  had 
to be extended  twice,  so that  it will  end  on 30 June 
1977.  Under  the  terms  of the  1972  Directive,  the 
Council,  acting  on a proposal  from  the Commission, 
must  adopt  a Directive  for the next  stage  (or stages) 
at least  12 months  before  the end  of the first  stage. 
1.4. Under  this  first  stage,  which  covered  the 
preparation  and  entry  into  force  of the  Treaty 
No C 278/12 Official  Journal  of the European  Communities 24.11.  76 
enlarging  the Community,  seven  Member  States  made 
the minimum  necessary  changes;  the United  Kingdom 
and Ireland,  having  completely  different  systems, 
were  granted  temporary  derogations. 
1.5. The  opinions  of  governments  (and  of 
producers)  concerning  the  appropriate  relationship 
between  the specific  and  proportional  components  of 
the excise  duties  for the final  harmonized  structure 
are still  sharply  divided.  Repeated  consultation  by the 
Commission  with  government  tax  experts  during 
1973,  and  again  in 1975,  failed  to find  any 
compromise  agreement. 
1.6. Faced  with  the  necessity  to have  a Council 
Decision  on the specific  criteria  applicable  during  the 
next stage  before  1 July  1976,  i.e.,  12 months  before 
the expiry  of the first  stage,  the Commission,  despite 
the difficulty  of reaching  agreement  with  the national 
experts,  submitted  on 10 February  1976  a proposal 
for a Council  Directive  for  the  second  stage. 
Unfortunately,  the Council's  decision  was  not  taken 
within  the time  limits  the Council  had  set itself. 
1.7. This  current  proposal  merely  extends  the first 
stage  for a further  six months  from  1 July  1977  to 
1 January  1978.  It follows  that  the  Council  must 
make  its decision  concerning  the system  to be applied 
during  the second  stage. 
2. General  observations 
2.1. The  Economic  and  Social  Committee  has 
repeatedly  expressed  the  importance  it attaches  to this programme  of harmonization.  It has  carefully 
analysed  and  given  its  opinion  on  proposals 
regarding  a 'definitions'  Directive  and  also  the 
proposals  for the second  stage  or subsequent  stages. 
It has recognized  the difficulties  involved  in reaching 
agreement  on such  complex  matters,  and has outlined 
suggested  approaches  which  might  lead  to agreement. 
The Committee  attaches  considerable  importance  to 
these  suggestions  which,  in its view,  may  help  in 
accelerating  the  establishment  of a true  common 
market  for  tobacco  goods.  It therefore  insists  that 
these  suggestions  should  be examined  as a matter  of 
urgency. 
2.2. The  Committee  has  approved  each  extension 
of the  first  stage  as requested,  but  with  increasing 
reluctance.  It believes  that  it must  now  seriously 
question  whether  the  political  will  really  exists  for 
the Council  to reach  a decision  to push  ahead  with 
the harmonization  programme.  For  this  reason,  it 
insists  that  the Council,  by 31 December  1976,  reach 
a definite  decision  on the  criteria  proposed  for  the 
second  stage  of harmonization,  bearing  in mind  the 
proposals  of the Commission  and  the opinions  of the 
Economic  and  Social  Committee  and  the  European 
Parliament. 
Done  at Brussels,  29 September  1976 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the proposal  for a multiannual  research  programme  of the  Joint  Research 
Centre  1977  to 1980 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 147  of 29 June  1976,  page  3. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 24 May  1976,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community.