The European Commission found in a report published today, Monday, that the minimum rates of cigarette taxes across the European Union do not deter smokers while member countries lose tax revenues, days before the disclosure of a new campaign to confront cancer.
The commission pointed out that the European rules have done little to reconcile the price of tobacco among member states, as the average price of a pack of cigarettes ranged between 2.57 to 11.37 euros (2.181 to 12.45 dollars) across the bloc.
She added that this constitutes "a sufficient economic incentive" for smokers to go to countries where cigarettes are sold cheaper and buy them from there, noting that it can be difficult to determine whether the massive purchases are for personal consumption only.
For example, France, one of the European Union countries with the highest average cigarette prices, lost 1.45 billion euros in fees between 2010 and 2016 because smokers were shopping from elsewhere, the report found.
These problems are made worse by the spread of alternative products such as e-cigarettes that do not meet the same tax rules, according to the commission.
In 2011, the European Union introduced rules to harmonize tobacco taxes between member states by setting a minimum fee for cigarettes. The goal is to curb consumption and deter cross-border shopping and smuggling within the bloc.
It is noteworthy that tobacco consumption is a major cause of cancer and is a disease that kills one in every four Europeans.
The European Commission, the executive arm of the European Union, said that more than a quarter of adults and 29% of European youth - still smoke, expressed "great concern".
The European Union rules are no longer appropriate, the commission found in its review, noting that it has played only a limited role in reducing cigarette smoking.