Member States’ ambassadors to the EU (Coreper) will discuss on Wednesday 27 May draft EU Council conclusions in favour of modernising the EU regulatory framework on excise duty rates for manufactured tobacco.
The draft text, dated 20 May and copied to EUROPE, asks the European Commission to present, on the basis of updated information and after carrying out an impact assessment, a legislative proposal to ensure equal tax treatment between new tobacco products, such as e-cigarettes, which do not fall into any category of products subject to excise duties under Directive 2011/64/EU.
In conclusions adopted in March 2016, the EU Council had already asked the Commission to present such a proposal in 2017 (see EUROPE 11508/22).
At the time, however, the Commission chose not to present a legislative proposal, in particular because of the lack of data on these new products, but also because several shortcomings identified in its evaluation report had in the meantime been resolved at national level.
Four years later, the EU Council maintains its position: the current provisions of the Directive are not adapted to the new generation of products entering the market, such as liquids for e-cigarettes and heated tobacco products.
Specifically, the draft text calls for harmonisation of the definitions and tax treatment of new tobacco products, including nicotine-free substitutes. New product categories and a definition of raw tobacco should be added to Directive 2011/64/EU, the text specified.
Member States also express concern that the wide disparity in taxes and prices of tobacco products between some Member States facilitates illegal cross-border trade in cheaper tobacco products within the EU.
And since several countries have recently increased the excise rates applied to manufactured tobacco, they consider that the minimum excise rates, set by the 2011 Directive, on a number of tobacco products should be increased.
However, this increase must be "gradual and proportional", leaving Member States sufficient flexibility to meet their revenue and public health objectives, the text says.
“Total convergence in excise duty rates and prices on tobacco products is difficult to achieve, given the divergence in levels of disposable income and economic situation in Member States”, it states.
The conclusions should be adopted by written procedure. (Original version in French by Marion Fontana)