Case Studies on the Impact of the Revision of the European Union Tobacco Tax Directive: Finland, Denmark, Netherlands, Belgium, and France

This Report was written by Ángel López-Nicolás from Universidad Politécnica de Cartagena (UPCT) in Spain. The report presents a case study of higher tax jurisdictions in the European Union: Finland, Denmark, Netherlands, Belgium, and France. Specifically, López-Nicolás compares the impact of an unofficial draft revision of the EU Tobacco Tax Directive (TTD) and an alternative, enhanced TTD revision to the status quo. Although these countries already have higher retail price levels, revisions to the TTD could disincentivize cross-border shopping and illicit trade between the "tobacco tax champions" and their neighbors. Both the draft TTD revision and the enhanced draft TTD revision would reduce price disparities between these select countries and their neighbors, although the enhanced draft TTD would be more effective in this aim. The report concludes with recommendations for policy makers in high-performing EU countries to support the resumption of the TTD renewal process, as well as to push for the policies outlined in the enhanced TTD to strengthen tobacco control and reap both public health and fiscal benefits.