Outdated EU cigarette tax rules blamed for slow drop in smoking – The Guardian, Theguardian.com

A pack of cigarettes still costs little more than £ 2 in parts of the EU, according to a (European commission) Report that warns of a disappointing rate of reduction in smoking in recent years.

It says the level of the EU’s minimum excise duty on cigarettes is outdated and higher taxes are required to deter young people from taking up the habit.

Countries with a strong public health agenda increased the costs for smokers far beyond the terms of the EU tobacco directive harmonizing tax levels, but with the result that smuggling has been encouraged.

In Bulgaria, a pack of (cigarettes costs on average € 2.) (£ 2.) , compared with £ 7. (€ 8.) ) in the UK and € in the Republic of Ireland.

The report says Denmark (€ 5. (a pack), Austria (€ 4.) ) and Luxembourg (€ 4. 68 also feature among the least expensive countries for buying cigarettes, after purchasing power is taken into consideration.

The disparity has created huge financial incentives for smugglers, whose illicit products account for 8% of all cigarettes consumed, the report says.

“It would be illusionary to expect that the convergence of prices would materialize in the near or longer future without further action at EU level,” the report says.

The rates of reduction in smoking predicted in a 2012 impact assessment have not been met. About 9% of adults (defined as over – (s) smoked in and .9% in . A 14% reduction had been predicted, the report says.

“The study confirms that taxation has proved to be a main driver for the reduction of smoking prevalence,” it adds. The Brussels directive is estimated to be responsible for only , (fewer smokers in the) – period.

The report says the EU has a particular problem with smoking among women when compared with other regions. “In some EU countries, prevalence among women is higher than among men and / or has been decreasing at a slower pace,” it says.

The minimum excise level set by the directive – at least € (per 1,) (cigarettes and at least) % of the average retail selling price of a pack – has been undermined by fine-cut tobacco remaining comparatively cheap.

The report notes: “The impact of taxation on dissuading youth from smoking in some member states has been lower than expected due inter alia to the substitution of cigarettes with less expensive products like fine-cut tobacco or, in some member states, with water-pipe tobacco.

“There are serious concerns with the illicit trade levels for these two products. These levels jeopardise the achievement of tobacco control and health protection objectives. ”

The EU’s policies on tobacco products have yet to catch up with innovation in the market, the report adds. The commission found that the number of regular consumers of e-cigarettes in the EU doubled between and , from approximately 6 million to more than 13 million.

The highest prevalence is in the UK and France, where the proportions of daily users exceed 4-5% of the population. In other EU countries it typically amounts to 1-2%. Almost half of member states have introduced an “ad hoc tax at national level” but Brussels is yet to deal with the issue on a pan-European basis.