Tobacco other than cigarettes: approximation of rates

This Directive establishes the minimum excise duties for manufactured tobacco products other than cigarettes as part of the internal market of the European Union (EU). A harmonised incidence of tax is therefore established for all products belonging to the same group of manufactured tobacco within the EU.

ACT

Council Directive 92/80/EEC of 19 October 1992 on the approximation of taxes on manufactured tobacco other than cigarettes [See amending act(s)].

SUMMARY

European Union (EU) countries are to apply a minimum excise duty to each of the following groups of products as defined by Directive 95/59/EC:

• cigars and cigarillos;
• fine-cut tobacco intended for the rolling of cigarettes;
• other smoking tobaccos.

The excise duty may be:

• an ad valorem duty calculated on the basis of the maximum retail selling price of each product;
• a specific duty, by quantity; or
• a composite duty combining an ad valorem element and a specific element.

The Directive lays down the minimum overall excise duty rates and amounts for the above-mentioned manufactured tobacco products. These rates apply without distinction as to quality, presentation, origin of the products, the materials used, the characteristics of the firms involved or any other criterion.

There is a derogation from the above, whereby France is allowed to continue applying a reduced rate of excise duty to manufactured tobacco, with the exception of cigarettes, released for consumption in Corsica until 31 December 2015.

There is a regular examination of the rates or amounts laid down by the Directive on the basis of a report from the Commission to the Council every 4 years.

The Commission must annually publish the value of the Euro in national currencies so that it can be applied to the amounts of the overall excise duty.

RELATED ACTS

Council Directive 92/79/EEC of 19 October 1992 on the approximation of taxes on cigarettes [Official Journal L 316 of 31.10.1992].

Council Directive 95/59/EC of 27 November 1995 on taxes other than turnover taxes which affect the consumption of manufactured tobacco [Official Journal L 291 of 6.12.1995].

See also

• Further information on taxation of tobacco products is available on the European Commission Taxation and Customs Union DG website.

Last updated: 09.07.2010