No L 291/40 Official Journal of the European Communities 6. 12. 95 COUNCIL DIRECTIVE 95/59/EC of 27 November 1995 on taxes other than turnover taxes which affect the consumption of manufactured tobacco THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 99 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parlia- ment (*), Having regard to the opinion of the Economic and Social Committee (3, (1) Whereas Council Directive  72/464/EEC  of 19 December 1972 on taxes other than turnover taxes which affect the consumption of manufactured tobacco (’) and Second Council Directive 79/32/EEC of 18 December 1978 on taxes other than turnover taxes which affect the consumption of manufactured tobacco (¥) have been amended substantially and on a number of occasions ; whereas for reasons of ration- ality and clarity the said Directives should be conso- lidated in a single text; (2) Whereas the objective of the Treaty is to establish an economic union within which there is healthy competition and whose characteristics are similar to those of a domestic market ; and, as regards manufac- tured tobacco, achievement of this aim presupposes that the application in the Member States of taxes affecting the consumption of products in this sector does not distort conditions of competition and does not impede their free movement within the Commu- nity ; (3) Whereas, as far as excise duties are concerned, harmonization of structures must, in particular, result in competition in the different categories of manu- factured tobacco belonging to the same group not being distorted by the effects of the charging of the tax and, consequently, in the opening of the national markets of the Member States ; {4) Whereas the structure of the excise duty on cigarettes must include, in addition to a specific component calculated per unit of the product, a proportional () OJ No C 56, 6. 3. 1995, p. 164. () OJ No C 133, 31. 5. 1995, p. 1. () OJ No L 303, 31. 12. 1972, I\? 1. Directive as last amended by Directive 92/78/EEC (O] No L 316, 31. 10. 1992, p. 5). {) OJ No L 10, 16. 1. 1979, p. 8. Directive as last amended by Directive 92/78/EEC. component based on the retail selling price, inclusive of all taxes; whereas the turnover tax on cigarettes has the same effect as a proportional excise duty and this fact should be taken into account when the ratio between the specific component of the excise duty and the total tax burden is being established ; (5) Whereas, as regards cigarettes, the abovementioned objective is best achieved by a system which provides for a degression in the incidence of the tax and whereas for this purpose, the tax imposed on these products should consist of a proportional excise duty combined with a specific excise duty, the amount of which is fixed by each Member State in accordance with Community criteria ; (6) Whereas the structures for excise duties on manufac- tured tobacco should be harmonized by stages; (7) Whereas the imperative needs of competition imply a system of freely formed prices for all groups of manufactured tobacco ; (8) Whereas there are several types of manufactured tobacco, distinguished by their characteristics and by the way in which they are used; (9) Whereas these different types of manufactured tobacco should be defined ; (10) Whereas, for economic reasons, temporary deroga- tions should be provided for certain Member States ; (11) Whereas a distinction needs to be made between fine-cut tobacco for the rolling of cigarettes and other smoking tobacco ; (12) Whereas a manufacturer needs to be defined as a natural or legal person who actually prepares tobacco products and sets the maximum retail selling price for each of the Member States for which the products in question are to be released for consumption ; (13) Whereas a majority of Member States grant exemp- tions from excise duty or make refunds of excise duty in respect of certain types of manufactured tobacco depending on the use which is made of them, and whereas the exemptions or refunds for particular uses need to be specified in this Directive ; (14) Whereas rolis of tobacco capable of being smoked as they are after simple handling should also be deemed to be cigarettes for the purposes of uniform taxation of these products;