Yesterday, the European Commission adopted not only the first part of the so-called Multiannual Financial Framework, but also agreed on a proposal for a revised Tobacco Excise Directive.
The Tobacco Excise Directive proposal demonstrates a total lack of understanding of the economics of tobacco taxation and breaks with the EU’s 50-year framework, which has historically ensured stable government revenues, a proper functioning of the internal market, and allowed Member States to achieve their health objectives.