H.E. Lars Løkke Rasmussen
Prime Minister of Denmark
Via email:
Brussels, 17 July 2017
Ref. nr.: 17.37682AA
Your Excellency,
With reference to the Council Conclusion of February 2016, Annex II, statement by Austria, Finland and
F a e, alli g fo a lose o e ge e of e ise dut applied to a ufa tu ed
tobacco towards the
highest o
o de o i ato , I a pleased to e uest ou u ge t atte
tion for the indication that
the segment of the so-
alled o de li e p odu ts is g o i g.
These products are classified in the lower
taxed cigar/cigarillo category, but are consumed as cheaper substitutes for cigarettes. Evidence in
Greece, Finland, France, Lithuania, and particularly Italy appears to require the consideration of
immediate regulatory steps at EU level.
The recent Economisti Associati study confirms that currently already 3.7 billion borderline products are
sold within the European market every year. This number is expected to rise considerably unless this
legal void is closed through the amending of Council Directive 2011/64/EU. Following in depth research
and consultations, the Dutch tax expert Prof Dr René van der Paardt has developed a so-called
Additio al P e e tio Ta APT app oa h that ill
eliminate negative effects of borderline products in
European markets while securing prevention efforts and excise duty income levels. The APT will only be
activated when National Member States become appraised of developments that require action. Such
action can then be taken within the framework of an adapted Directive. Still, activating the APT
mechanism may not be necessary once the Council Directive has started to discourage the use of the
void.
The concern that borderline tobacco products will attract particularly young and low income consumers
has led the PA International Foundation to conducting a so-called Elite Poll among 100 of the most
esteemed tax and health experts, including from Government, science, consumers and NGOs. Please
find attached a complete report of this poll. A majority of 60.8% prefers APT as the best solution for the
borderline problem. 81.4% considers borderline products as a potential threat to public health. The
attached poll report includes a paragraph explaining the goal and content of the APT. During our
consultation with DG TAXUD of the European Commission, the APT was clearly defined as a deterrent to
manufacturers currently considering to step into the borderline void if only because their competitors
have already done so.
I am copying this letter to all other leaders of EU Member States and to all National
Pa lia e ts
Standing Committees on Health and Finance.
Thank you very much in advance for your highly-appreciated attention and support.
Yours sincerely,
Prof Mark Eyskens
Chairman, PA International Foundation
Former Prime Minister of Belgium