The acting Governing Council approved this Monday a draft decree that implies that all cigarettes and roll-your-own tobacco that are sold in the Canary Islands must have a new seal from the Canary Islands Tax Agency, "which will help consumers differentiate that it is legally sold tobacco".
This new regulation modifies a previous decree that regulates the public price for the supply of circulation seals for tobacco products, so that the rate of the stamped document is updated and all the information required by the European Union can be included to guarantee the traceability of the tobacco and know the product's journey from its manufacture to the final consumer.
During the press conference after the Council, the acting Minister of Finance, Rosa Dávila, pointed out that the illicit trade in tobacco products has a "serious negative impact" from a health point of view, especially on the health of minors, who may run the risk of choosing a cheaper product, which does not comply with manufacturing guarantees and does not pay taxes either. "That is why it is so important to carry out adequate control of the regulatory regulations and ensure that the corresponding taxes are applied as a strategy to fight against organized crime," she said.
About 2,300 annual deaths and 180 million in health expenses
In this sense, the regional Executive points out that, according to the latest Canary Islands Health Survey, there are 466,000 people over 16 years of age who smoke regularly, which constitutes 26.2% of the total population, with the proportion of men (28.7%) and women who smoke (23.7%) being very close.
In addition, it is estimated that about 2,300 Canarians die each year as a result of tobacco consumption and that the cost in health services derived from tobacco consumption can represent about 180 million euros, "a figure much higher than the collection of the Tax on Tobacco Products and Other Tax Measures, which in 2018, was 129.67 million euros".
The Minister detailed that this collection is about nine million euros more than in 2014, when it was 120.43 million, although there is a decrease compared to the figures for 2016 (139.76 million) and 2017 (140.96 million).
Characteristics of the new seals
Rosa Dávila listed the characteristics of the seals that will help consumers differentiate the tobacco that is legally sold. The seals are stamped and numbered documents, which must be attached to the packaging that constitutes the minimum packaging unit, whether they are packs, containers or containers containing rolling tobacco and must always be visible to allow identification and verification of their authenticity.
Likewise, they cannot be removed before the consumer makes use of the product and must be below the transparent wrapping that surrounds the container and each seal must have a numbering that allows its identification.
Regarding the management of the seals, manufacturers, tax deposit holders and importers must request the seals from the managing office of the Canary Islands Tax Agency in which that establishment is registered, according to a model that is available on the electronic headquarters of the ATC. The ATC will authorize the delivery of the requested circulation seals, which will be done under receipt, noting its quantity and numbering. The delivery of the seals will accrue the corresponding public price, in accordance with article 17.5 of Law 1/2011, of January 21.
Regarding the holder of the applicant establishment, he/she must immediately indicate to the managing office any incidence or error in the quantity, numbering or type of tax stamps actually received. In that case, the managing office must carry out the appropriate verification actions quickly, without the receiving establishment being able to dispose of the affected seals until the managing office grants the corresponding authorization.
At least once a year, the Canary Islands Tax Agency will carry out counts of circulation seals in the establishments whose holders have been given them. Cigarettes or rolling tobacco imported by individuals that are not intended for commercial purposes will not require circulation seals, provided that they do not exceed 800 cigarettes or 1 kilogram of rolling tobacco, respectively.
Tax-free shops
The acting Governing Council has also modified this Monday, at the request of the Ministry of Finance, decree 314/2011, of November 24, which regulates the regime of tax-free shops for the purposes of the Tax on Tobacco Products.
Thanks to this modification, all tobacco products, including rolling tobacco, that are sold in these establishments must include the new seals in order to offer all the traceability guarantees required by the European Union through community regulations.
Until now, it was not mandatory for tax-free shops to place circulation seals, as long as they were sold to travelers or to people who were not considered travelers but who did not buy more than 800 cigarettes or their purpose was not subsequent commercialization. From now on, in addition to eliminating this limitation, the obligation of the new labeling is included for rolling tobacco, extending the measure to all tobacco products.
Both decrees will enter into force once published in the Official Gazette of the Canary Islands, but with effects from May 20, 2019.
