AND MORE ADVANTAGEOUS BENEFITS ACCORDING TO THE MARKET SITUATION . THAT IS CONFIRMED BY THE FACT THAT THE APPLICANTS ADMITTED COMPLYING WITH THE SYSTEM , ESTABLISHED BOTH BY THE RECOMMENDATION AND THE MEASURES IN FORCE PRIOR THERETO , IN RELATION TO MARGINS .
111 THE APPLICANTS MAINTAIN HOWEVER THAT VARIOUS NATIONAL RULES AND ADMINISTRATIVE PRACTICES IN FORCE IN BELGIUM IN THE SECTOR OF MANUFACTURED TOBACCO PRODUCTS HAVE SUCH DECISIVE EFFECT UPON CONDUCT OF THE BELGIAN MANUFACTURERS AND IMPORTERS OF THOSE PRODUCTS BOTH AS REGARDS THE MARGINS AND OTHER FINANCIAL BENEFITS ALLOWABLE TO TRADERS AND THE SALE PRICES TO CONSUMERS THAT THE OBJECT OR EFFECT OF THE CONTESTED MEASURES CANNOT BE TO RESTRICT COMPETITION , AT LEAST TO AN APPRECIABLE EXTENT .
112 IT FOLLOWS FROM THE PREVIOUS CONSIDERATIONS THAT IT IS NECESSARY TO CONSIDER THE NATURE AND SCOPE OF THE SAID BELGIAN RULES AND ADMINISTRATIVE PRACTICES AND ANY EFFECT THEY MAY HAVE ON COMPETITION .
( I ) BELGIAN RULES AND ADMINISTRATIVE PRACTICES
- THE BELGIAN TAX RULES REGARDING EXCISE DUTIES ON TOBACCO
113 IT IS APPARENT FROM THE FILE THAT A FEATURE OF THE TAX SYSTEM TO WHICH MANUFACTURED TOBACCO PRODUCTS , ESPECIALLY CIGARETTES , ARE SUBJECT IN BELGIUM IS AN AD VALOREM EXCISE DUTY CALCULATED ON THE RETAIL SELLING PRICE INCLUDING VALUE- ADDED TAX . THE AGGREGATE AMOUNT OF THE TWO TAXES MUST BE PAID BY THE MANUFACTURER OR IMPORTER WHEN BUYING THE TAX BANDS WHICH ARE AFFIXED TO THE VARIOUS TOBACCO PRODUCTS BEFORE THEY ARE MARKETED WHETHER THEY ARE MANUFACTURED IN BELGIUM OR IMPORTED INTO THAT COUNTRY ; THE TAX BANDS SHOW THE RETAIL PRICE TAKEN INTO ACCOUNT IN CALCULATING THE TAXES DUE .
114 UNDER BELGIAN LAW RETAILERS MUST STRICTLY OBSERVE THE PRICES SHOWN ON THE TAX BANDS . THAT REQUIREMENT ARISES FROM ARTICLE 58 OF THE BELGIAN LAW OF 3 JULY 1969 ESTABLISHING THE VAT CODE , WHICH PROVIDES THAT AS REGARDS THE SAID PRODUCTS THE VALUE-ADDED TAX IS CALCULATED ON THE BASIS OF THE PRICE ON THE TAX BAND WHICH MUST BE THE IMPOSED CONSUMER PRICE . IT FOLLOWS THAT AS FROM 1 JANUARY 1971 , WHEN THE PROVISIONS OF ARTICLE 58 ENTERED INTO FORCE , THE RETAIL PRICE SELECTED BY THE MANUFACTURER OR IMPORTER AUTOMATICALLY BECOMES THE IMPOSED CONSUMER PRICE .
115 IT IS COMMON GROUND THAT DURING THE WHOLE PERIOD DURING WHICH THE MEASURES IN QUESTION HAVE APPLIED AND IN ANY EVENT FROM 13 MARCH 1962 , THE DATE WHEN REGULATION NO 17 OF THE COUNCIL OF 6 FEBRUARY 1962 ENTERED INTO FORCE , MANUFACTURED TOBACCO PRODUCTS HAVE BEEN AND STILL ARE SUBJECT TO A HIGH PROPORTIONAL EXCISE DUTY .
116 IT IS APPARENT FROM THE FILE THAT THE PROPORTION OF THE RETAIL PRICE REPRESENTED BY TAXATION IS MADE UP AS FOLLOWS : A SPECIFIC EXCISE DUTY OF A GIVEN AMOUNT IN BELGIAN FRANCS PER ARTICLE ; A PROPORTIONAL EXCISE DUTY AMOUNTING TO A GIVEN PERCENTAGE OF THE RETAIL PRICE ; VALUE-ADDED TAX CALCULATED ON THE NON-TAX ITEMS OF THE RETAIL PRICE