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EU Shelves Plan To Amend Tobacco Tax Directive

by Ulrika Lomas, Tax-News.com, Brussels

19 January 2018


Following a review initiated in March 2016, the European Commission has recommended that no changes be made to the EU Directive governing the taxation of tobacco products.

The review was started following a meeting of EU economy and finance ministers, which asked the Commission to study potentially revising Directive 201/64/EU of July 21, 2011, on the structure and rates of excise duty on manufactured tobacco.

The Commission set out its decision in a report to the Council published January 12, 2018. According to that document, six areas of EU tobacco taxation were considered for potential reform: the introduction of harmonized tax rules for e-cigarettes; improved oversight of the trade in raw tobacco; equalizing tax rates for cigars and cigarillos with cigarettes; a potential review of rolling tobacco taxation compared with pre-made cigarettes, which are subject to higher tax rates; measures to tackle illicit trade in water-pipe tobacco; and a minimum excise duty across the EU on tobacco.

The Commission said it would revisit the work, including on minimum excise duty rates, in 2018.

TAGS: tax | European Commission | value added tax (VAT) | excise duty | tax rates | trade | European Union (EU) | Europe

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