Ref. Ares(2017)4280052 - 01/09/2017
EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
Indirect Taxation and Tax administration
Indirect taxes other than VAT
Brussels,
taxud.c.2(2017)4837018
MEETING REPORT
1. Subject
Impact assessment on Directive 2011/64 and the possible
consequences on tobacco farmers
2. Date and Place
13 October 2016, Brussels
3. Participants
DG TAXUD:
Copa-Cogeca:
4. Summary of the discussion
Copa-Cogeca requested a meeting to explain the possible consequences of revision of
Directive 2011/64/EU might have for farmers. Copa-Cogeca mentioned that many
farmers work in rural areas where it is not possible to find an alternative source of
income. Many of these farmers have 1 ha per family. The CAP reform heavily impacted
the tobacco farming sector. Imposing excise duties on raw tobacco would have disastrous
effects, according to Copa-Cogeca. TAXUD explained that during the evaluation it was
reported that raw tobacco was diverted from the legal to the illegal circuit and that one of
the options considered is to include raw tobacco in the scope of excisable goods to enable
the use of the Excise Movement and Control (EMCS) system. Moreover, an impact
assessment will be carried out to demonstrate the benefits and disadvantages of such an
option, after measuring the scope of the problem.
Copa-Cogeca supports the efforts to eliminate illicit trade but believes that there will be
many practical problems with implementation of such an option. For example, what
would happen if the raw tobacco could not be harvested and is destroyed? Would this
require authorities to come and check this? Copa-Cogeca suggests that other tools could
be investigated to fight illicit trade, for instance, an interbranch-organization which
focusses on the tobacco from producer to first buyer such as Italy and Spain have to
regulate the national market.
Report by:
c.c.:
, TAXUD LIST C2
Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel. +32 22991111