EU Commission Urges Higher Tobacco Taxes for Public Health
In a 196-page proposal, the European Commission has called on EU member states to increase the prices of tobacco products in an effort to curb the consumption of tobacco and promote public health. The proposal, titled “Proposal for a Council Directive on the structure and rates of excise duty applied to tobacco and tobacco related products” aims to reduce the demand for tobacco through fiscal measures.
According to the proposal, higher taxes could serve as a “price signal” to convey the message that smoking is a harmful habit that should be fought with all means necessary. The EU Commission suggests that the tax increase should be proportionate to the wealth of each country, taking into account the varying economic situations of its member states.
The European Taxpayers’ Federation estimates that in Germany, the price of cigarettes could rise by around a fifth if the plan is implemented. “We expect a 20 percent increase in cigarette prices. This needs to be stopped urgently” said Michael Jäger, the federation’s president, in an interview with a German newspaper.