Time limit on cigarette sales unlawful

The European Commission has formally requested that Estonia change its excise duty legislation as it relates to the marketing of cigarettes.

The Commission’s ‘reasoned opinion’ on Estonian tobacco excise was included last week in a memo listing September’s 147 infringement decisions against member states.

The Commission said that in Estonia, a time limit was set for the sale of cigarettes that was linked to the fiscal stamp on the packaging.

Three months after a new tax stamp design was introduced, cigarettes bearing the old design were banned from being sold.

But under EU law, excise duty on tobacco products had to be charged at the rate applicable on the date on which they were released for consumption.

There was no provision under EU legislation that allowed member states to limit the distribution of tobacco products already released for fiscal reasons.

Therefore, this sale prohibition was not justified, the Commission said in its reasoned opinion, which is the second step in EU infringement proceedings.

According to such proceedings, if Estonia does not bring its rules into compliance within two months, the Commission might refer the matter to the European Court of Justice.