Studies and evaluations of EU legislation on excise duties for manufactured tobacco have been conducted over the years. This page presents an overview of these studies.
Council conclusions
In its conclusions of 2 June 2020, the Council recommends taking a comprehensive approach to the review of EU rules, that in addition to responding to fiscal objectives, addresses public health, illicit trade and environmental concerns.
Commission evaluation
In February 2020, the European Commission published an evaluation of the functioning of the Directive on excise duties for manufactured tobacco.
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. It also assesses the performance of the Tobacco Taxation Directive against the evaluation criteria set out in the Better Regulation Guidelines.
The evaluation shows that while the current rules work well in terms of predictability and stability for EU countries’ fiscal revenue, it is no longer as effective in deterring consumption. The increase in EU minimum rates for cigarettes and fine-cut tobacco, as set out in the Directive, only had an impact in a few EU countries, which had very low levels of taxation in the first place.
The high number of smokers in the EU is still a matter of significant concern with 26% of the overall EU adult population, and 29% of young Europeans aged 15-24, smoking. The launch of Europe's Beating Cancer Plan highlights the pivotal role of taxation in reducing tobacco consumption and in deterring young people from smoking.
In addition, price gaps between Member States – the average price of a pack of cigarettes can range from €2.57 to €11.37 – represent a sufficient economic incentive for high levels of cross-border shopping. The evaluation also highlights that the emergence of new products, such as e-cigarettes, heated tobacco products and new addictive products reveal the limits of the current legal framework.
The evaluation concludes that a more comprehensive approach, taking on board all aspects of tobacco control including public health, taxation, the fight against illicit trade and environmental concerns, is needed.
External study
An external study by the consulting firm Economisti Associati was conducted in 2019 to provide a comprehensive and evidence-based evaluation of the Council Directive on the structure and rates of excise duty applied to manufactured tobacco.
Previous reports
- Report from the Commission to the Council(January 2018)
- Council Conclusions from 8 March 2016, adopting the report and requesting the Commission to carry out the necessary studies to prepare a possible legislative proposal for revision of Directive 2011/64/EU
- Report from the Commission to the Council (December 2015)