The European Board demands higher cigarette taxes

The European Board has presented yesterday a rapport and a proposal of directive that concerns the ruling of the legislation which sets the tax level for cigarettes. The directive foresees a gradual increase of the tax level for cigarettes until 2014. The proposal's goal is to eliminate the differences between the states members of EU in what concerns the tax level. Also, the directive's purpose is to reduce smoking up to 10% in the next 5 years. At this moment, the cigarette tax is 57% of the price and it has to be at least 64 euros/1000 cigarettes taking into consideration EU regulations.

The actual percentage of 57% will be replaced with 63%, and the total tax for cigarettes will increase from 64 euros to 90 euros until 2014. In Romania, according to the Fiscal Code, the total tax for cigarettes is 50 euros/1000 cigarettes, applied from the 1st of July 2008. According to the commitments assumed by Romania towards European Union, the tax level for cigarettes will increase annually, until it reaches the required level.

Adding date: 17.07.2008