COUNCIL RESOLUTION of 21 April 1970 an taxes, other than turnover taxes, on the consumption of manufactured tobacco

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

1. Notes the declaration of the German Delegation to the effect that the Government of the Federal Republic of Germany will implement a procedure with a view to:

- repealing the rules and regulations governing prices and taxes in respect of cigarettes containing not less than 50% unmanufactured tobacco of German origin;

- repealing rules and regulations governing prices and taxes for quantities of cigarettes under quota from producers declared with the customs authorities for the calendar year 1951;

- lowering the minimum retail sale price of cigarettes from DM 0.09 to a minimum of DM 0.08.

Those provisions must enter into force as soon as technically possible. A transitional system may be provided for in order to ensure that existing stocks of German tobacco which are not covered by the common organization of the market in unmanufactured tobacco can be used up.

2. Will adopt by 1 January 1971 a Directive providing for the introduction in several stages of a harmonized excise duty system for manufactured tobacco products. As regards excise duty on cigarettes, that system will involve a proportional component and a specific component in order that at the final stage, which is to start on 1 January 1980, a fixed relation between those components may be attained so that the range of retail sale prices freely fixed by manufacturers should reflect to a fair extent the differences in delivery prices.

The transition from one harmonization stage to the next will be decided by the Council in the light of the effects of measures introduced during the current stage by the Member States in their excise duty system in order to comply with the provisions applicable during this stage. The transition from one stage to the next may be postponed in particular where it is likely to bring about for a Member State disproportionate loss of revenue.

3. Agrees, without prejudice to the solution to be finally adopted as regards the relation between the specific component and the proportional component, that, in the first stage beginning not later than 1 July 1971, Member States may charge an excise duty on cigarettes which shall include a specific component which may not be less than 5% nor above 75% of the amount of excise duty charged in respect of the most widely sold type of cigarettes.

4. Agrees that the Italian Republic may postpone the introduction of the specific component referred to in paragraph 3 until the beginning of the second stage but not beyond 1 January 1973.