Tobacco: Does the EU threaten the low prices in Luxembourg?

What if it was the end of the “cartridges bought at Lux”? Tancied for several decades to sell its cigarettes at a particularly low price to thousands of foreigners and cross -border workers, Luxembourg could lose its tax advantage. A small revolution that would not result from a desire for the government to end this particular “tourism”, but from the European Union which is currently working on a new regulations aimed at adapting the taxation of tobacco to purchasing power in member countries. In the head peloton in the matter, the Grand Duchy would therefore be forced to increase his excise.

An internal 200 -page document consulted by Essential Details in all respects which would constitute a deep change for industry and distributors in Luxembourg. According to the calculations carried out by the Luxembourg company Landewyck, this would lead to an increase in the package of 20 cigarettes of 3.50 euros, an increase of 60%.

“This proposal would in principle amount to offering our activities and market shares on a set to the four multinationals, non -European, which already dominate this sector (…) imagine for a moment that in each European country VAT, or the tax on petrol, is indexed to its purchasing powers index? How many Luxembourgers would they pay for their liter of gasoline? ”Said society, which also fears a development of smuggling.

A discourse in opposition to that of the Cancer Foundation, which sees in this directive a potentially decisive step in its objective of “tobacco -free generation”: “It is a very good initiative. Studies show that the prohibitive price prevents many young people from starting and pushes some adults to stop, ”explains Margot Heirendt. The director of the Foundation is nonetheless cautious. On the one hand, the entry into force of such a reform could take “years, probably”. On the other hand, the power of the tobacco lobbies in Brussels is already feared in Mrs. Heirendt death in the egg of the directive.

The possible opposition of member countries will also be observed carefully. Among the most concerned, Luxembourg would lose many buyers from abroad. Would the mechanical increase in assize income fill the decrease in the number of buyers? Income that it would also be interesting to balance with the social cost of tobacco. “These figures, we do not have them. It is not for lack of asking them for years. But we know that in France, the package should be at 45 euros so that tobacco pays for as much as it costs … “, illustrates the Cancer Foundation.

Asked, the Ministry of Health explained “not being able to take a stand on the subject”, given “that no proposal from the European Commission has been presented”. Same story on the side of the Ministry of Finance who considers that it is “too early to comment”. The ministry of Gilles Roth (CSV), however, indicates “following the file closely”.