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Cigarettes: approximation of rates
This Directive establishes an overall minimum excise duty for cigarettes as part of the internal market of the European Union (EU). EU countries are granted some flexibility to adjust the incidence of the overall minimum excise duty in line with certain changes, including those in VAT rates.
ACT
Council Directive 92/79/EEC of 19 October 1992 on the approximation of taxes on cigarettes [See amending act(s)].
SUMMARY
The Directive lays down minimum consumption taxes on cigarettes, as defined by Directive 72/464/EEC, i.e.:
Each European Union (EU) country has to apply an overall minimum excise duty of 57% of the weighted average retail selling price of cigarettes released for consumption. That excise duty shall not be less than EUR 64 per 1000 cigarettes irrespective of the weighted average retail selling price. However, EU countries which levy an excise duty of at least EUR 101 per 1000 cigarettes on the basis of the weighted average retail selling price need not comply with the 57 % requirement.
From 1 January 2014, the overall excise duty on cigarettes shall represent at least 60 % of the weighted average retail selling price of cigarettes released for consumption. That excise duty shall not be less than EUR 90 per 1000 cigarettes irrespective of the weighted average retail selling price. However, Member States which levy an excise duty of at least EUR 115 per 1000 cigarettes on the basis of the weighted average retail selling price need not comply with the 60 % requirement.
Bulgaria, Estonia, Greece, Latvia, Lithuania, Hungary, Poland and Romania are allowed a transitional period until 31 December 2017 in order to reach the required amount of excise duties. There are also derogations for Portugal (relating to the Azores and Madeira) and France (relating to Corsica).
When an EU country increases the VAT rate on cigarettes, it may lower the overall excise duty up to an amount equal to the VAT rate increase (when both are expressed as a percentage of the weighted average retail selling price) even if this in effect reduces the overall excise duty to below the required levels. If this is the case, EU countries are required to increase the duty again in the following year to reach the required level.
There is a procedure for the regular examination of the rates or amounts laid down in the Directive on the basis of a report from the Commission to the Council.
References
Act |
Entry into force |
Deadline for transposition in the Member States |
Official Journal |
Directive 92/79/EEC |
10.11.1992 |
31.12.1992 |
OJ L 316 of 31.10.1992 |
Amending act(s) |
Entry into force |
Deadline for transposition in the Member States |
Official Journal |
Directive 1999/81/EC |
11.8.1999 |
01.01.1999 |
OJ L 211 of 11.8.1999 |
Directive 2002/10/EC |
8.3.2002 |
01.07.2002GER: 01.01.2008SP/GR: 01.01.2008 |
OJ L 46 of 16.2.2002 |
Directive 2003/117/EC |
20.12.2003 |
31.12.2003 |
OJ L 233 of 20.12.2003 |
Directive 2010/12/EU |
27.2.2010 |
1.1.2011 |
OJ L 50 of 27.2.2010 |
RELATED ACTS
Council Directive 92/80/EEC of 19 October 1992 on the approximation of taxes on manufactured tobacco other than 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].
Last updated: 09.07.2010