Changes from plenary report to adopted text

Change 1

RemovedDirective (EU) 2020/262

RemovedArticle 1 – paragraph 1 – point 1 a (new), Article 32 – paragraph 3 – point a: (1a) in Article 32(3), point (a) is replaced by the following: / ‘a) for manufactured tobacco and tobacco related products: / – smoking tobacco, other manufactured tobacco: 1,0 kg, / – heated tobacco: 800 items or 260 g of other formats, / – liquid for electronic cigarettes: 80 ml, / – nicotine pouches, other nicotine products: 560 g;’.

RemovedThe Tobacco Taxation Directive (TTD) recast aims to update the rules on tobacco taxation both in terms of minimum excise duty rates as well as by including novel tobacco related products that have emerged since the last TTD review. Given the dual objective of ensuring both the proper functioning of the internal market and a high level of health protection, it is necessary to find an ambitious but also feasible and realistic equilibrium. The Rapporteur of course understands the need for a review of the tobacco taxation rules in the EU - the minimum rates are becoming outdated due to wage increases and inflation, new products have entered the market and a certain level of harmonization across EU Member States is desirable. Moreover, tobacco taxation can have an impact on public health.

RemovedHowever, it is essential to strike the right balance. Raising the minimum rates of taxation must be done in a careful and thought-out way, taking into account all possible effects on consumers, national tax authorities and the tobacco products market. The effectiveness of excise duties depends not only on the level of minimum rates, but also on the pace, structure and predictability of their implementation. Excessively abrupt or rigid adjustments may distort legal markets and increase incentives for illicit trade, thereby undermining both revenue collection and enforcement objectives. That is why the Rapporteur proposes a more gradual and pragmatic increase of the minimum rates.

RemovedA central consideration of the Report is the differentiated treatment of products based on their characteristics, health risks and patterns of use. The Commission proposal recognises the diversity of tobacco and nicotine products and introduces specific tax structures for individual categories. The Rapporteur supports this differentiated approach and considers it essential to always consider the specificities of different tobacco products.

RemovedThe Report also addresses the balance between public health objectives and fiscal structure. Evidence suggests that some noncombustible products may present lower risks than traditional cigarettes and may contribute to reduced consumption of the most harmful products. The Rapporteur therefore believes that excise duty policy should avoid a one-size-fits-all approach and should reflect relative risk profiles in a proportionate manner.