European Commission: EU excise duty on tobacco products has not contributed to reducing consumption

The EU minimum excise duty on tobacco products did not contribute to discouraging consumption, although the current rules work well for the predictability and stability of Member States’ budget revenues, according to the European Commission’s report on tobacco taxation.

The report also reports that the current rules have not been effective in harmonizing tobacco prices in the EU. The difference in tobacco prices in individual Member States encourages smokers to buy tobacco from other countries where they are cheaper. (MTI)