Tobacco Taxation in the European Union : An Overview
The European Union has a long experience in tobacco tax harmonization, which provides useful lessons learned. In the European Union, tobacco tax harmonization took place in stages, and currently all Member States have agreed upon definitions, tax b...
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| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/493581492415549898/Tobacco-taxation-in-the-European-Union-an-overview http://hdl.handle.net/10986/26496 |
| Summary: | The European Union has a long experience
in tobacco tax harmonization, which provides useful lessons
learned. In the European Union, tobacco tax harmonization
took place in stages, and currently all Member States have
agreed upon definitions, tax base, and minimum excise duty
rates for all product categories of manufactured tobacco.
Tobacco tax harmonization pursues several different
objectives, among which some might appear contradictory at
first sight. This is the case in the European Union, where
ensuring collection of revenues and ensuring a high level of
health protection are, among others, objectives of tobacco
tax harmonization. Reaching the objective to ensure a high
level of health protection implies a declining consumption
and thus declining revenues. It therefore seems impossible
to reach both objectives with the same legal provisions.
However, experience in the European Union proves otherwise.
Lower tobacco consumption and the decrease in revenue this
would otherwise generate have been compensated by increased
rates, thereby reaching both objectives. |
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