Local view for "http://purl.org/linkedpolitics/eu/plenary/2002-02-05-Speech-2-060"
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"en.20020205.4.2-060"2
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"Mr President, we feel that the Katiforis report on the proposal for a directive on the structure and rates of excise duty applied on manufactured tobacco products is a good compromise on the Commission and Council’s proposal. Indeed, adopting the Commission’s proposal, we would ultimately have made the legislation too inflexible and created great difficulties, particularly for the manufacturing sector, with the result that the cost of national production – especially in southern Europe – would have increased and its quality decreased. There would also be an increase in smuggling, as has already been pointed out. In particular, we feel that the idea of a fixed amount minimum excise tax on cigarettes, as proposed, would not have protected – or rather, would have compromised – equality in the field of competition between very large and small and medium-sized tobacco companies, thus leading to distortion of the principle of competition.
In our opinion, Mr Katiforis’ report focuses on three goals. Firstly, the goal of tax harmonisation – it proposes a rate of 71% – in that VAT rates are made subject to a common rule for we are imposing a total tax for the first time: excise duties plus VAT; by taking this line, we will achieve greater convergence and avoid indiscriminate price increases and penalising the manufacturing industries of the Member States of southern Europe. Secondly, the goal of combating fraud and smuggling. Thirdly, it also achieves the aim of greater prevention of health risks, which is not obtained through continually increasing taxation but, we feel, especially through specific investment in research too.
Lastly, we feel that the position on cigars and cigarettes as presented in the Katiforis report is more convincing in that it also avoids potential employment slumps, thus safeguarding the principles laid down in Article 127 of the Treaty.
Therefore, Mr Katiforis, the Italian members of the Group of the European Liberal, Democrat and Reform Party, European republicans, democrats, Italy of Values members and liberal socialists will support your report."@en1
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