Fic rEcommEndationS - Eurobank EFG

The Law on Advertising adopted in 2005 heavily restricts tobacco
advertising. Still, some of its provisions are not precise
enough, thus allowing arbitrary interpretation and posing difficulties
in the implementation of the Law. The new draft Advertising
Law contains further restrictions in line with the relevant
EU Directive and best regulatory practices in EU member
states and brings clarity to critical provisions. FIC is strongly in
favour of the immediate adoption of the new Advertising Law,
drafted by the Ministry of Agriculture and Trade.
Accession to the European Union is a key strategic political
and economic goal of the Republic of Serbia. This process
entails the progression of the Serbian fiscal and regulatory
Fic rEcommEndationS
frameworks toward full harmonisation of Serbian legislation
with EU acquis. In this context, Serbia’s tobacco regulatory
framework will continue to evolve towards the EU,
while the provisions and recommendations of the Framework
Convention on Tobacco Control (FCTC) will also be
taken into consideration. EU’s principles of consultation
are based partly on the recognition of the need for specific
experience, expertise or technical knowledge in the
development of regulations that are effective, technically
viable, practically workable, enforceable and with minimal
unintended consequences. In many areas, the FCTC itself
recognises that local conditions will determine the ability
of a country to adopt a regulatory recommendation.
The new Excise Tax Law should progress towards a smooth and gradual long-term harmonisation with the EU, having
in mind consumer affordability, regional developments and risks of illicit trade growth. The Government should
re-examine the excise tax policy, by decreasing the proportional element and increasing the specific element and
introducing more effective minimum tax mechanism in line with new EU methodology. In this way, Serbia’s budget
would have stable and constantly growing revenues from cigarettes and would be less dependent on the pricing
strategies of tobacco companies. Finally, the new excise tax policy should lead to certainty and predictability of fiscal
environment, which is a key prerequisite for all foreign investors, along with political stability;
Another important issue to be taken into consideration is the earmarked tax on tobacco products. FIC strongly
believes that all fiscal charges, including this tax, should be directed only through the Law on Excise, as is the
practice in the EU member states;
Urgent adoption of the new Advertising Law drafted by the Ministry of Agriculture and Trade. FIC believes that
the regulator has to set forth clear rules in tobacco advertising that would be effectively enforced and that would
create a level playing field for all market participants. We believe that the new draft of the Advertising Law contains
reasonable further restrictions of tobacco advertising and brings more clarity to tobacco products advertising,
particularly with reference to Article 64 of the current Law (articles 87–90 of the new draft Law). Hence, FIC
urges the Government to submit the new draft Law on Advertising to the Parliament for immediate adoption;
The regulators should engage in public consultations and make a complete and accurate assessment of all regulatory proposals
in the early stage of the regulatory development process. FIC firmly stands behind its belief that it is of the utmost
importance that local regulators understand the national implications of regulatory measures they are considering by employing
a complete assessment of the science base, as well as an accurate assessment of wide socio-economic consequences
thereof. Given the complexities in certain areas of regulation and the expertise of the tobacco companies, it is especially
important to develop a regulation that is technically viable, practically workable and enforceable. Furthermore, FIC strongly
supports open and transparent dialogue between regulators and the tobacco industry, just like for any other industry, following
the principles of participation, openness, accountability, effectiveness and coherence adopted by the EU.
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