Portugal opposes EU proposals on tobacco taxes

The Portuguese authorities has issued a press release expressing reservations about each the European Fee’s proposal to revise EU tobacco laws and its plan to impose a further tax to generate income for the subsequent long-term funds.

Earlier this month, the Fee unveiled a €2 trillion funds proposal for the 2028–2034 interval and launched 5 new “personal assets” income streams supposed to fund the EU funds immediately. Considered one of these is a 15% levy referred to as the Tobacco Excise Obligation Personal Useful resource (TEDOR).

Based on the Portuguese authorities, the proposal would lead to a lack of nationwide tax income of as much as €1.5 billion, which “naturally, can’t be accepted underneath the present circumstances.”

Portugal joins Greece, Italy and Romania, which have additionally expressed their opposition to the Fee’s plan.

On the identical day the brand new funds proposal was offered, the Fee additionally unveiled a revision of the Tobacco Taxation Directive (TTD), proposing sharp will increase in tobacco taxes throughout the EU.

Based on knowledge obtained by Euractiv, in Portugal, the value of a pack of cigarettes would improve by €1.22.

Lisbon has additionally objected to this, significantly as different tobacco merchandise corresponding to digital cigarettes, heated tobacco and nicotine pouches can be topic to the identical taxation as conventional cigarettes.

“Portugal has reservations about making use of equal taxation to cigarettes and different types of smoking which can be much less dangerous to well being,” the federal government mentioned.

Advocates of other merchandise argue that they’re much less dangerous than conventional cigarettes. Nevertheless, the EU has adopted the WHO’s stance, which maintains that “much less dangerous” nonetheless means dangerous.

“Since taxes are a type of disincentive, we imagine that much less dangerous types of smoking must be topic to decrease taxes to encourage people who smoke to modify to those merchandise,” the Portuguese authorities famous.

The federal government additionally warned that increased tobacco taxes may gas black markets, as seen in different EU nations. The EU govt, nevertheless, holds a special view: aligning costs via increased taxes throughout the bloc, an official informed Euractiv, is seen as a key instrument to cut back illicit tobacco commerce.

(cs)