MEP Tomáš Kubín (PfE, Czech) has proposed “a more gradual and pragmatic increase of the minimum rates” in his draft report on revising the Tobacco Taxation Directive, published on Thursday 5 March. He wishes to adapt the indexation tool by limiting it to core inflation and introducing a maximum adjustment ceiling of 12%.
“Excessively abrupt or rigid adjustments may distort legal markets and increase incentives for illicit trade, thereby undermining both revenue collection and...