WRITTEN QUESTION E-0139/98 by Michl Ebner (PPE) to the Commission (30 January 1998)

Subject: Campaign against smoking

As the Commission adopted on 21 April 1995 a European Parliament and Council decision on an action plan 1995-1999 to combat cancer, which identifies smoking as posing the greatest risk of cancer and calls for action against smoking in measures to combat cancer,

as more recent information relates a substantial proportion of cancers and many fatalities caused by cancer to lifestyle and as 30% of cases of cancer must be attributed to tobacco consumption, even though Regulation No 2075/92 on the common organization of the market in raw tobacco provides for the setting up of a Community fund for tobacco research and information; smoking is thus the most frequent avoidable cause of death in the Union,

as the EU Treaty requires that health protection form a constituent part of the Community's policies, including the common agricultural policy and

as expenditure on supporting the market in tobacco still amounts to ECU 817 million,

1. will the Commission propose to Parliament and the Council that the measures in support of raw tobacco should be abolished and that the resources should be spent on preventive health care;

2. does the Commission not consider it appropriate for a new super-tax to be imposed on tobacco products, with the proceeds spent on cancer research? This should also be regarded partly as compensation for the considerable damage to the economy that can be attributed to tobacco consumption. Such a measure would also be compatible with the increase in the real price of tobacco proposed by Parliament and with the setting of a minimum level of tobacco taxes in the context of their harmonization. As Parliament has recognized, price can have a major influence on tobacco consumption and is an important instrument in the policy on tobacco consumption;

3. what actions to combat the causes of cancer and what projects to encourage people to stop smoking are planned in order to give practical form to the fight against cancer?

Answer given by Mr Flynn on behalf of the Commission (1 April 1998)

1. On 22 January 1998, the Commission adopted a proposal for the reform of the common organisation of the market in raw tobacco ((COM(98)19 final. )). This text was forwarded to Parliament and the Council.

In accordance with the report it presented at the beginning of 1997, the conclusions of which were well received by both the Council and Parliament, the Commission proposes in the text adopted in January 1998 that support for raw tobacco production should continue and that there should be an in-depth reform of the system in order to encourage quality. The Commission also proposes taking more account of public health and environmental concerns, and to this end proposes doubling the budget for the Community fund for research and information on tobacco.

2. It is true that prices can have an influence on tobacco consumption. However, in deciding to adopt a system of minimum tax rates for tobacco products in the internal market, the Council made a decision in favour of a system of freely formed prices for these products.

Indeed, according to Council Directive 95/59/EC of 27 November 1995 on taxes other than turnover taxes which affect the consumption of manufactured tobacco ((OJ L 291, 6.12.1995. )), manufacturers are free to determine maximum retail prices for each of their products for each Member State in which they are to be released for consumption. The authorities are free to determine their rates of indirect taxes on condition that they respect the minimum rates laid down for tobacco products in Council Directive 92/79/EEC of 19 October 1992 on the approximation of taxes on cigarettes and Council Directive 92/80/EEC of 19 October 1992 on the approximation of taxes on manufactured tobacco other than cigarettes ((OJ L 316, 31.10.1992. )). Consequently, it is a matter for Member States to take into account the specific situation in their country, health considerations and other factors such as fraud when fixing their rates.

At this moment, the Commission has no intention to make proposals for additional taxes on tobacco products. However, Member States are free to subject tobacco products to other indirect taxes for specific purposes, provided that those taxes comply with the tax rules applicable for excise duty and VAT purposes as far as determination of the tax base, calculation of the tax, chargeability and monitoring of the tax are concerned.

3. Community actions to combat cancer are found within the 'Europe Against Cancer' programme, which includes initiatives to inform and educate the public on the dangers of smoking. A series of prevention projects have been financed by this programme, and details of such projects financed in 1996 and 1997 are sent direct to the Honourable Member and to Parliament's Secretariat, together with details of information projects financed through the Community fund for research and information on tobacco.