The EU committee wants to revise the Tobacco Tax Directive this year and discussions are currently ongoing. Ultimately, cigarettes and alternative products can also become more expensive. The Member States are divided on the question.
Bad news for smokers: According to the latest climbers, EU plans can guarantee a new price shock. Because the Commission wants to revise the Tobacco Tax Directive this year, causing their heads to smoke in the Member States. There is nothing in the committee’s work program. As the “Kroon” has learned, there should be a lot of discussion at European level.
The Member States so far did not agree
Recently, more than ten states, under the initiative of the Netherlands, turn to the Hungarian EU health commissioner Olivér Várhelyi in a letter that is available for the “Krone” and demanded a revision. Now, for example, the Italian government reacted and wants to brake the EU, warns of tax increases, which should also have been accompanied by Greece and Romania.
Unanimity among the Member States is necessary for a new directive. Big problems are, for example, how to deal with alternative products. In committee rings there are also a few fears that higher taxes can also heat inflation.
New tax classes requested
The last tobacco tax guideline dates from 2011 and must be revised, alternatives such as e-cigarettes must be part and control classes must be adjusted and increased. This is also confirmed by the EU committee. In 2022 there was already a design under the Swedish presidency, but the project failed at the time. At that time it was planning to double the minimum percentage. The extent to which the concept is currently in the current attempt is not yet public. However, a new text for tobacco tax will come soon.
The “Kroon” asked the Austrian EU parliamentarians. FPö delegation manager Harald Vilimsky, an opponent of the project, is not surprising. He says to the “Kroon”: “In reality it is about one thing: new money for the Clammy EU fund. A harmonization of tobacco tax would not be relieved, but would yield extra loads.”
Illegal sales of cigarettes as a problem
For the VP -Mandate Lukas Mandl, it is surprising why the Polish presidency gives the subject such a priority, especially because tax is sovereignty in the countries. “The EU does not have to interfere here,” he says. SP MP Günter Sidl in turn understands concern. It is about limiting (illegal) border sale and bringing the directive to a period of time. But taxes also play a role in sale. EU Commissioner Magnus Brunner recently warned more smuggling in a newspaper for excessive taxes.
Austria is still looking for its positioning, says the government. The committee confirms that they are working on a new version of the old guideline. Criticism also comes from Michael Jäger, the president of the European TaxPayer Association: “We can only shake our heads here! To discuss such a tax hammer in times of crisis, shows how far Brussels apparently has disappeared into the reality and needs of people.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
