What changed between the draft committee report and the plenary report

Change 27

Changed:Article 20 – paragraph 5: 5. By way of derogation from paragraph 2, from 1 January 20312032 until 31 December 20322033 Member States shall ensure that excise duty rates are at least EUR 24 per 1 000 items or per kilogram or 10 % of the retail selling price inclusive of all taxes for cigars and cigarillos, at least EUR 71,5 per kilogram or 25% of the retail selling price inclusive of all taxes for other smoking tobacco, at least EUR 54 per kilogram or 25% of the retail selling price inclusive of all taxes for waterpipe tobacco, at least EUR 68 per 1 000 items or EUR 97 per kilogram or 30 % of the retail selling price inclusive of all taxes for heated tobacco, and at least EUR 71,5 per kilogram or 25% of the retail selling price inclusive of all taxes for other manufactured tobacco.

Change 28

Removed:The transition period is prolonged by one year. To arrive at the desired final rates for cigars and cigarillos and heated tobacco products as laid out in the table in Art. 20 par. 2, the rates applying during the transitional period have been adapted accordingly.

Added:Article 22 – paragraph 1 – subparagraph 1 – point a a (new): (aa) in the case of liquids for electronic cigarettes, a specific duty expressed as an amount per millilitre;

Change 29

Changed:Article 22 – paragraph 1 – subparagraph 1 – point a a (new):b: (aa)(b) in the case of liquidsnicotine forpouches electronicand cigarettesother nicotine products, a specific duty expressed as an amount per millilitre;kilogram, or alternatively for a given number of items;

Change 30

Removed:This formulation is more specific and better suited for liquids for electronic cigarettes.

Added:Article 22 – paragraph 1 – subparagraph 1 – point c: (c) a mixture of the excise duties under points (a) and (aa), or points (a) and (b), combining an ad valorem element and a specific element.

Change 31

Changed:Article 22 – paragraph 12: –2. subparagraphThe 1overall –excise pointduty b:on (b)liquids infor theelectronic casecigarettes, ofwhether nicotinethey pouchescontain andnicotine otheror nicotinenot, productsexpressed aas specifica dutypercentage expressedor as an amount per kilogram,millilitre, orshall alternativelybe forat aleast given30 number% of items;the retail selling price inclusive of all taxes or the Union rate of EUR 0,30 per millilitre, adjusted in accordance with Article 12. / (deleted) / (deleted)

Change 32

Removed:The objective is to introduce an approach tailored for each product category and to be as specific as possible.

Added:Article 22 – paragraph 3 – subparagraph 1: Member States shall be allowed a transitional period until 31 December 2032 in order to reach the rates or minimum amounts laid down in paragraph 4 of this Article.

Removed:Article 22 – paragraph 1 – subparagraph 1 – point c: (c) a mixture of (a) and (aa), or (a) and (b) accordingly, combining an ad valorem element and a specific element.

Added:Article 22 – paragraph 3 – subparagraph 2 – introductory part: From 1 January 2030 the overall excise duty, expressed as a percentage, as an amount per kilogram or as an amount for a given number of items, shall be at least equivalent to the rates or minimum amounts laid down for:

Removed:The objective is to introduce an approach tailored for each product category and to be as specific as possible.

Added:Article 22 – paragraph 3 – subparagraph 2 – point a: (a) nicotine pouches: 20 % of the retail selling price including all taxes or the Union rate of EUR 30 per kilogram;

Change 33

Changed:Article 22 – paragraph 23 – introductory part: 2. The overall excise duty on liquidssubparagraph for2 electronic– cigarettes,point whetherb: they(b) containother nicotine or not, expressed as a percentage or as an amount per millilitre, shall be at leastproducts: 4020 % of the retail selling price inclusive ofincluding all taxes or the Union rate of EUR 0.3625 per millilitre, adjustedkilogram inor accordanceEUR with0,25 Articleper 12.millilitre.

Change 34

Removed:To make enforcement of the Directive more feasible for national tax authorities, we decided to introduce the same levels of taxation for liquids for electronic cigarettes (vapes) regardless of the nicotine content of the liquid. Tax and customs authorities would not have to examine the nicotine content in order to carry out their obligations.

Removed:Article 22 – paragraph 2 – point a: deleted

Removed:Article 22 – paragraph 2 – point b: deleted

Removed:Article 22 – paragraph 3 – subparagraph 2 – introductory part: From 1 January 2030 the overall excise duty, expressed as a percentage, as an amount per kilogram or for a given number of items, shall be at least equivalent to the rates or minimum amounts laid down for:

Removed:Article 22 – paragraph 3 – subparagraph 2 – point a: (a) nicotine pouches: 20 % of the retail selling price including all taxes or the Union rate of EUR 57 per kilogram;

Removed:Only some Member States have already introduced an excise duty on nicotine pouches. It is therefore necessary to slightly decrease the speed of taxing them.

Removed:Article 22 – paragraph 3 – subparagraph 2 – point b: (b) other nicotine products: 20 % of the retail selling price including all taxes.

Article 22 – paragraph 4 – introductory part: 4. From 1 January 2033 Member States referred to in the first sentence of paragraph 3 of this Article, shall ensure that the overall excise duty, expressed as a percentage, as an amount per kilogram or for a given number of items, shall be at least equivalent to the rates or minimum amounts laid down for:

Change 35

Changed:Article 22 – paragraph 4 – point a: (a) nicotine pouches: 3528 % of the retail selling price including all taxes or the Union rate of EUR 10050 per kilogram, adjusted in accordance with Article 12;

Change 36

Removed:Only some Member States have already introduced an excise duty on nicotine pouches. Moreover, the Commission itself states in its impact assessment that the proposed rates for nicotine pouches could trigger a "market collapse" in some Member States (page 103). It is therefore necessary to keep the final minimum rates feasible and more realistic.

Added:Article 22 – paragraph 4 – point b: (b) other nicotine products: 35 % of the retail selling price including all taxes or the Union rate of EUR 35 per kilogram or EUR 0,25 per millilitre.

Removed:Article 22 – paragraph 4 – point b: (b) other nicotine products: 35 % of the retail selling price including all taxes.

Article 26 – paragraph 2 – subparagraph 1 – point a a (new): (aa) manufactured tobacco and tobacco related products which are destroyed under administrative supervision;

Change 37

Removed:This is a very technical addition addressing situations when Member States change the excise duties on products with tax stamps (e.g. cigarettes). In such cases, products bearing a tax stamp that reflects the previous (lower) excise duty rate must not remain in circulation once the transitional period has ended. For this reason, authorised warehousekeepers and other relevant economic operators are entitled to a refund of the excise duty already paid, provided that the products are withdrawn from the market and destroyed under the supervision of the competent authorities.

Added:Article 28 – paragraph 1 – subparagraph 2: The report by the Commission shall examine minimum levels of taxation taking into account the proper functioning of the internal market, public health, the real value of the rates of excise duty taking into account also the purchasing power in individual Member States, and the wider objectives of the Treaty on the Functioning of the European Union. The Commission shall also monitor the impact of revised minimum rates taking into account illicit trade, employment in affected sectors, and regional economic disparities. The report shall assess the application and the impact of the provisions regarding raw tobacco as regards tax evasion and fraud.

Article 28 – paragraph 1 – subparagraph 3: Member States shall, upon request, submit to the Commission available information needed to prepare the report.

Change 38

Removed:We believe the Commission has enough expertise and resources to collect this information by itself. In addition, we do not consider such information to be necessary for the Commission to prepare the relevant report.

Article 28 – paragraph 4: deleted

Change 39

Removed:In our opinion, it is not sound legal drafting to premise in the current recast what decisions the Commission should take in the future. Moreover, it is unclear why equalisation of the taxation levels for different product categories is needed and desirable in the first place.

Added:Article 28 a (new): Article 28a / By … [two years from the date of entry into force of this Directive], the Commission shall assess the impact of the new minimum excise duty rates applicable to cigars and cigarillos on SMEs, family-owned manufacturers, regional employment, supply chains, and substitution patterns. Where the assessment shows a disproportionate adverse impact on SMEs, family-owned manufacturers or regional employment, the Commission shall submit a legislative proposal to adjust the applicable minimum rates or the structure of those rates so as to ensure proportionality and to maintain an appropriate differential vis-à-vis cigarettes.

Removed:Article 28 a (new): Article 28a / By … [two years from the entry into force of this Directive], the Commission shall assess the impact of the new minimum excise duty rates applicable to cigars and cigarillos on SMEs, family-owned manufacturers, regional employment, supply chains, and substitution patterns. Where the assessment shows disproportionate impacts on SMEs, family-owned manufacturers or regional employment, the Commission shall submit a legislative proposal to adjust the applicable minimum rates or the structure of those rates so as to ensure proportionality and to maintain an appropriate differential vis-à-vis cigarettes.

Added:Article 30: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)