EU Countries Still Mulling Over Tobacco Tax Transition Periods

Provisions allowing countries to extend their phase-in of steep tax increases on tobacco are “still under consideration,” according to the latest draft of the tobacco tax bill seen by Bloomberg.

The latest draft, dated Tuesday, said a provision that allowed countries to extend transition periods by three years if they had to hike rates by more than 2.8% annually “should be modified in order for the derogation to be granted based on objective criteria.”

The note is an indication that some of the provisions of the bill, like automatic price hikes to align with inflation and a mechanism that adjusts ...