ITSA Calls For EU TPD Improvements

The International Tax Stamp Association (ITSA) is calling for improvements to a directive that controls the manufacture, presentation and sale of tobacco products in the European Union.

ITSA believes that while the EU Tobacco Products Directive (TPD), which is currently undergoing a mandatory review, has been very effective in some areas, lessons can and should be learnt from it that authorities may adopt as best practice as they move forward with their own plans, including implementation of the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products.

ITSA’s call for improvements echoes a 2021 report ¹ by the European Commission (which identifies the need to more effectively implement the Directive on a national level and take into greater consideration current market developments), and follows a recent webinar for ITSA members and industry stakeholders on the tracking and tracing of tobacco products.

The webinar presented research studies on successful approaches adopted by tax authorities around the world to fight the illicit tobacco trade through the use of tax stamps and track and trace systems. It also provided a critical review of Article 15 of the EU TPD, which prescribes the application of a unique identifier onto each pack of tobacco products so that they can be tracked and traced throughout the supply chain, as well as a review of Article 16, prescribing the application of authentication features on each pack.