Brussels to propose change to tax on tobacco

European Taxation Commissioner Laszlo Kovacs intends to propose how cigarettes and cigars are to be taxed.

While declining to give any details he has invited all those concerned to put forward their suggestions.

"I am going to make a legislative proposal on tobacco taxation by the end of this year.

"Recent discussions with the business sector and member states indicate that there is a need for modernisation and simplification,' the Commissioner said.

Under the Tobacco Excise directives, the Commission is required to examine, every four years, the smooth operation of the single market, the real value of excise-duty rates and the wider objectives of the treaty. The Commission said that although excise duty is primarily an instrument for generating revenue at a national level, policy-making has to take the wider objectives of the treaty into account. These include particular attention to health policies.

The online consultation, opened until June 1, is of interest to all stakeholders, in particular businesses involved in the manufacturing of tobacco products, health organisations, government administrations, NGOs and organisations representing consumers.

To be adopted, proposals for changing EU taxes require unanimity among the bloc's 27 members.

The consultation can be accessed at http://ec.europa.eu/taxation_customs/common/consultations/tax/article_3835_en.htm.