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Taxation and Customs Union
News article10 February 2020Directorate-General for Taxation and Customs Union

Taxation of manufactured tobacco products

The European Commission has conducted an evaluation of the functioning of Directive 2011/64/EU. The evaluation examined if the excise duty rates applied to manufactured tobacco have protected public health and ensured a proper functioning of the internal market. The evaluation shows that the current legislation has been working well in terms of predictability and stability of fiscal revenues for Member States. Directive 2011/64/EU has also provided a high degree of flexibility for Member States to implement their national fiscal policies regarding traditional tobacco products.

The European Commission has conducted anevaluationof the functioning of Directive 2011/64/EU. The evaluation examined if the excise duty rates applied to manufactured tobacco have protected public health and ensured a proper functioning of the internal market.

The evaluation shows that the current legislation has been working well in terms of predictability and stability of fiscal revenues for Member States. Directive 2011/64/EU has also provided a high degree of flexibility for Member States to implement their national fiscal policies regarding traditional tobacco products.

However, the development and emergence of new products, such as e-cigarettes or heated tobacco products illustrate the limits of the current legal framework.

The evaluation concludes that after the initial increase of EU minimal rates for cigarettes and fine-cut tobacco, the impact of the Tobacco Taxation Directive on public health has been moderate.

The evaluation also shows a need to develop more synergies between the Directive and other EU policies. More coherence with the EU agenda in the fight against cancer is needed, as well as a more comprehensive and holistic approach that takes on board all aspects of tobacco control including public health, taxation, the fight against illicit trade and environmental concerns.
The evaluation report is available here.

The consultation strategy provides more information on the consultation activities related to this initiative.

Read the evaluation summary (in English, French or German)

Read the full report (in English)

Details

Publication date
10 February 2020
Author
Directorate-General for Taxation and Customs Union