EU calls for a tax hike on tobacco products

The European Union wants the minimum duty on cigarettes to increase to reflect inflation, putting all states on an equal footing. The EU plans giving member states greater flexibility in levying duties as part of efforts to reduce the number of smokers. The proposal is part of the bloc’s regular four-yearly update on the union’s tobacco excise duties. Consumption of cigarettes in the 27 nations fell by 10 percent between 2002 and 2006, while excise duties rose by an average of 33 percent. A 25 percent price rise would be needed to achieve a 10 percent cut in demand according to the commission. It also wants higher taxes on rolling tobacco to bring them in line with cigarettes, likewise cigars and cigarillos.
Source: EuroNews