Tag: cross-border

  • EU to Tighten Cross-Border Tobacco, Alcohol Limits?

    EU to Tighten Cross-Border Tobacco, Alcohol Limits?

    Several EU member states have proposed tightening single-market rules on the personal import of tobacco products, as part of discussions on revising the Tobacco Taxation Directive (TED), according to Euractiv. Denmark, which holds the EU Council presidency, floated the idea in early December, suggesting stricter limits on cross-border tobacco imports under Article 32 of the Excise Duty Directive, alongside more moderate tax increases. The move aims to curb cross-border shopping that undermines high-tax anti-smoking policies in countries such as France.

    Currently, individuals can import up to 800 cigarettes for personal use. A number of countries, including France, Germany, Finland, and Estonia, have expressed openness to lowering this threshold, with some also supporting limits on alternative tobacco products like heated tobacco.

    The European Commission has been cautious, indicating that changes to Article 32 may fall outside the scope of the TED. Some member states have also noted that the rules apply to alcohol as well, prompting calls from countries such as Finland, Estonia, and Germany to extend any revisions to alcoholic beverages.

  • Tobacco Tax Hikes No Longer Boosting Revenue, Says Dutch Officials

    Tobacco Tax Hikes No Longer Boosting Revenue, Says Dutch Officials

    The Dutch government’s tobacco tax hikes have stopped generating extra revenue due to cross-border cigarette purchases and declining smoking rates, according to a Ministry of Finance report. A 5-cent tax increase per pack was once projected to add €7 million annually, but that figure is now revised to zero. “At the current level of tobacco excise, further increases are expected to trigger strong behavioral changes that will fully offset any extra revenue,” the report stated.

    Finance officials expect tobacco tax receipts to hold steady at €2.5 billion in both 2025 and 2026, with the current excise duty set at €7.81 per pack and no further hikes planned. Customs data showed that 45% of cigarette packs lacked a Dutch excise stamp last year, up from 15% in 2021, illustrating the scale of cross-border buying. Most were legally purchased abroad, where prices are lower, but over 10% were counterfeit.

    Health officials say the hikes are curbing smoking, as the National Institute for Public Health and the Environment estimates 7% of smokers quit after the most recent increase, while 22% cut back.