Jump to full article: UPI, 2002-09-23
Intro: According to rules crafted in the mid-1990s, Hungary and other "first-wave" enlargement countries were supposed to enact reform legislation by 2002 to harmonize tax rates with West Europe and, thus, qualify for EU entry in 2004. . .
But in recent months, pressure from several candidate countries prompted EU enlargement negotiators to back off on tobacco tax reform in the East. At the request of individual countries, the EU granted cigarette-tax concessions for Poland, Slovakia, Estonia, Latvia, Lithuania, Bulgaria and the Czech Republic.
Each country will be able to delay cigarette tax increases for several years. Poland got permission to delay reforms until 2009. Estonia can wait until 2010.
Hungary's finance and foreign ministers asked for a similar concession last spring -- igniting the ire of Dr. Felix and others in his camp. Smoking opponents believe that government ministers sought concessions under pressure from, and in behalf of, big tobacco companies.
The official arguments for tax-hike delays range from concerns that higher taxes would encourage cigarette smuggling, to a fear that costlier smokes would spark consumer rebellions that eventually could lead to rejection of voter referendums for EU membership in candidate countries.
In granting the delays, the EU found those arguments valid. . .
But Budapest asked Brussels to take another look at its cigarette tax plan because -- as foreign ministry spokesman Tamas Toth told the MTI news agency -- the EU handed a concession to neighboring Slovakia in March. . .
Dr. Vadasz and his group, the Alliance for Tobacco Control, recently filed a formal complaint with the government.
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