EC proposes increasing tax on cigarettes
Friday, 18 July 2008
BRUSSELS, July 17 (Xinhua): The European Commission proposed yesterday to gradually increase minimum taxation levels in the European Union (EU) on cigarettes, aiming to discourage smoking and fight smuggling.
Under the plan, the excise duties levied on cigarettes must account for at least 63 of the price on average in 2004 from 57 per cent currently, and they must be at least 90 euros (140 U.S. dollars) per 1000 cigarettes, compared to 64 euros (100 U.S. dollars) at present.
"Today's proposal supports the EU policy to reduce tobacco consumption and narrow the differences in price levels of tobacco products within the EU," said Laszlo Kovacs, EU Commissioner for Taxation and Customs Union.
According to the World Bank, price increases in tobacco products are the most effective single intervention in preventing smoking.
The commission estimated that the increase of tax would contribute to a 10 per cent decrease in tobacco consumption in most member states within the next five years.
Under the plan, the excise duties levied on cigarettes must account for at least 63 of the price on average in 2004 from 57 per cent currently, and they must be at least 90 euros (140 U.S. dollars) per 1000 cigarettes, compared to 64 euros (100 U.S. dollars) at present.
"Today's proposal supports the EU policy to reduce tobacco consumption and narrow the differences in price levels of tobacco products within the EU," said Laszlo Kovacs, EU Commissioner for Taxation and Customs Union.
According to the World Bank, price increases in tobacco products are the most effective single intervention in preventing smoking.
The commission estimated that the increase of tax would contribute to a 10 per cent decrease in tobacco consumption in most member states within the next five years.