CELEX: 51992PC0370(01)
Language: en
Date: 1992-09-24
Title: Amended proposal for a COUNCIL DIRECTIVE on the approximation of taxes on cigarettes

COMMISSION OF THE EUROPEAN COMMUNITIES
   ^VN-W
                                                          C0M(92) 370 final
                                                          Brussels, 24 September 1992
                                       Amended proposal for a
                                          COUNCIL DIRECTIVE
                            on the approximation of taxes on cigarettes
                                       Amended proposal for a
                                          WUNCiUWtECmE
                       on the approximation of taxes on manufactured tobacco
                                       other than cigarettes
                      (presented by the Commission pursuant to Article 149(3)
                                         of the EEC Treaty)
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                                          EXPLANATORY MEMORANDUM
 On 6 Noveiber 1989 the Couission presented to the Council aiended proposals for Council Directives on
 the approximation of taxes on cigarettes and on the approxiiation of taxes on îanufactured tobacco other
 than cigarettes.1
 The Econoiic and Social Conittee gave its opinion on the proposals on 5 July 1990. 2
 The European Parliament gave its opinion on 10 March 19923 on the basis of the report drawn up by the
 Comittee on Econoiic and Monetary Affairs and Industrial Policy. A total of 21 of the aiendients
 proposed in the report were adopted by Parliaient on that date. They are intended inter alia to ensure
 the iipleientation of a conversion prograne for the Couunity tobacco industry in certain regions, to
 fix an overall liniiui excise-duty level for cigarettes effective froi 1 January 1993, and to draw a
 distinction between fine-cut sioking tobacco and rough-cut sioking tobacco, etc.
 The Couission has taken up five of the aiendients adopted by Parliaient, although soie only in part.
 They are dealt with in these aiended proposals.
 The two lain reasons why the Couission could not accept a large proportion of the aiendients proposed
 were firstly because several of the aiendients were technically incoipatible with its proposal and
 secondly because several of the aiendients re-opened the arguient as to whether tobacco taxation should
 be predoiinantly specific or ad valoru*. The Couission does not consider it necessary for the
 coipletion of the internal îarket to re-open this debate.
10J Ho C 12 of 18 January 1990, p. 4.
20J Ho C 225 of 10 Septeiber 1990, p. 56.
30J Ho C ...,            , p. ...
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                                AMENDED PROPOSAL FOR A COUNCIL DIRECTIVE
                                          ON THE APPROXIMATION
                                         OF TAXES ON CIGARETTES
                  Ninth recital                                          Ninth recital
Whereas those diverse situations should be             Whereas those diverse situations should be
evened out; whereas, to that end, flexibility of       evened out; whereas, to that end, starting with
those tax coiponents should be introduced in the       liniiui rates in order to achieve an internal
fori of linimn rates in order to achieve an            •arket without frontiers at 1 January 1993,
internal larket without          frontiers at          those tax coiponents should be approxiiated
1 January 1993;                                        stage by stage with a view to achieving single
                                                       target rates;
 ---pagebreak---                                                    - 4-
                                 AMENDED PROPOSAL FOR A COUNCIL DIRECTIVE
                                     ON THE APPROXIMATION OF TAXES ON
                                MANUFACTURED TOBACCO OTHER THAN CIGARETTES
ORIGINAL PROPOSAL                                        AMENDED PROPOSAL
Article 1                                                Article 1
The following groups of hoie-produced and                unchanged
iiported lanufactured tobacco shall be subject,
in each Meiber State, to an ad valorei excise
duty calculated on the basis of the îaxiiui
retail selling price of each product, freely
deteriined by lanufacturers and iiporters in
accordance with Article 5 of Directive
72/464/EEC:
(a) cigars and cigarillos;                               (a) unchanged
(b) sioking tobacco;                                     (b) sioking tobacco, including:
                                                               1. fine-cut sioking tobacco;
                                                               2. rough-cut sioking tobacco;
(c) chewing tobacco;
                                                         (c) unchanged
(d) snuff.
                                                         (d) unchanged
Article 3(1)
                                                         Article 3(1)
1. In the longer ten, each Meiber State shall            1. In the longer ten, each Meiber State shall
apply a target ad valorei rate of excise duty in        apply an ad valorei rate of excise duty in such
such a way that the total tax burden resulting          a way that the total tax burden resulting froi
froi the coibination of the excise duty and VAT         the coibination of the excise duty and VAT is:
is:
      for cigars and cigarillos: 361                          unchanged
     for sioking tobacco: 561                                 for fine-cut sioking tobacco: 561
                                                              for rough-cut sioking tobacco: 381
     for snuff and chewing tobacco: 43%                       unchanged
 ---pagebreak---                                                    - 5-
  of the retail selling price inclusive of all
 taxes.
                                                       of the retail selling price inclusive of all
                                                       taxes
 ORIGINAL PROPOSAL                                     AMENDED PROPOSAL
 Article 3a(lï                                         Article 3a11)
1. By 1 January 1993 at the latest, each Heiber        1. unchanged
State shall apply an ad valorei rate of excise
duty in such a way that the total tax burden
resulting froi the coibination of the excise duty
and VAT is not less than :
- for cigars and cigarillos : 251                     - unchanged
- for sioking tobacco : 50%                           - for fine-cut sioking tobacco : 501
                                                      - for rough-cut sioking tobacco : 501
- for snuff and chewing tobacco : 371                 - unchanged
of the retail selling price inclusive of all          of the retail selling price inclusive of all
taxes.                                                taxes.
Article 4                                             Article 4
Every two years, and for the first tiie not later     Every two years, and for the first tiie not later
 than 31 Deceiber 1994, the Council, acting on the    than 31 Deceiber 1994, the Council, acting on the
 basis of a report and, where appropriate, a          basis of a report and, where appropriate, a
 proposal froi the Conission, shal exaiine the         proposal froi the Conission, shall exaiine the
 target rates of duty and the liniiui rates and        provisions of this Directive. It shall, acting
 shall, acting unaniiously, lake the necessary         unaniiously and after consulting the European
  adjustients.                                         Parliaient, lake the necessary adjustients.
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                                                                     ISSN 0254-1475
                                                              COM(92) 370 final
                                                      DOCUMENTS
EN                                                                         03 09
                                 Catalogue number : CB-CO-92-383-EN-C
                                                             ISBN 92-77-47191-3
Office for Official Publications of the European Communities
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