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 Ireland: Tobacco price law ruled illegal

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Ireland: Tobacco price law ruled illegal Vide
PostSubject: Ireland: Tobacco price law ruled illegal   Ireland: Tobacco price law ruled illegal Icon_minitimeThu Mar 04, 2010 6:23 am
An Irish law setting minimum retail prices for cigarettes is illegal, judges have ruled.

The European Court of Justice rejected Irish government claims that it needs to fix a high minimum price to discourage smoking.

That can be achieved, said the Luxembourg judges, by increasing excise duty on tobacco, but imposing a minimum price undermines fair competition in the tobacco market, in breach of EU rules.

An EU "Manufactured Tobacco Tax Directive" says makers and importers of tobacco have the right to fix the maximum retail selling price for their products.

The directive is designed to ensure that the tax base for cigarettes is subject to the same rules in all member states, and also to "maintain the freedom of manufacturers and importers to make effective use of the competitive advantage resulting from any lower cost prices".

http://www.independent.ie/breaking-news/national-news/tobacco-price-law-ruled-illegal-2088657.html

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