TAE welcomes the critical comments made by the German Minister, Ilse Aigner, regarding the EU Tobacco Products Directive.

The Taxpayers’ Association supports the government’s concerns regarding the effectiveness of graphic warning images in the context of the Tobacco Products Directive.

According to media reports, the governing coalition is now calling on the European Commission to provide scientific evidence for a key aspect of the new Tobacco Products Directive: the effectiveness of measures such as oversized shock images. The European Taxpayers’ Association (TAE) expressly welcomes the criticism levelled at the EU’s plans by the Federal Minister for Consumer Protection, Ilse Aigner (CSU), and calls for further improvements.

The introduction of shock images on 75 per cent of packaging, the standardisation of products and packaging, and the ban on entire product segments through the prohibition of so-called ‘characteristic flavours’ constitute drastic interventions in the market. These measures severely restrict a legal market, and there is no scientific evidence of their effectiveness.

Should the plans promoted by the European Commission to date be implemented, studies suggest that tax revenue losses of up to 30 billion euros could result across Europe. Rolf von Hohenhau, President of the European Taxpayers’ Association, is therefore calling for a comprehensive debate on the consequences of a new Tobacco Products Directive (TPD) across all sectors: “The government’s initiative is a first step in the right direction, as nothing has changed regarding the dramatic impact of the TPD. We reject measures that jeopardise jobs and lead to tax shortfalls without a thorough examination of the legal consequences.” There are fears that the proposed measures will cause parts of the market to be lost to the black market. Furthermore, the standardisation of packaging and products, for example, will lead to price wars, as price will become the sole distinguishing feature. Both of these developments run counter to the stated aim of improving health protection, according to von Hohenhau.

It is important to address this issue, emphasises von Hohenhau, particularly given that this directive sets a precedent for many other sectors. Mr von Hohenhau: “Such a comprehensive and far-reaching regulation must be based on scientific evidence, and the consequences for all stakeholders must be taken into account. The German Government’s statement can only be a first step in this regard; the task now is to examine and discuss the proposals in detail together.”

Munich/Brussels, 11 March 2013