Judgment of the Court (Sixth Chamber) of 25 March 2021

1. Member StatesObligations resulting from Union lawFailure to fulfil obligationsNational system pleaded as justificationNot permissible

(Art. 258 TFEU)

(see paras 48, 49)

2. Tax provisionsHarmonisation of lawsTaxes other than turnover taxes which affect the consumption of manufactured tobaccoDirective 2011/64Application and collection, after the expiry of a transitional period, of a lower excise duty than that provided for in that directiveNot permissibleJustificationsNone

(Council Directive 2011/64, Art. 11(2))

(see paras 51, 54, 64, 65, operative part 1)

3. Acts of the institutionsDirectivesPeriods for implementationExtension of time limit which has proven insufficientProcedure

(Art. 288 TFEU)

(see para. 55)

4. Member StatesObligationsFailure to fulfil obligationsJustificationPrinciple of sincere cooperationInvocation by a Member State to preclude a finding of failure to fulfil obligationsNot permissible

(Art. 258 TFEU)

(see paras 57, 59)

Operative part

The Court:

1. Declares that, by applying to cigarettes an overall excise duty of less than 60% of the weighted average retail selling price of cigarettes released for consumption and levying an excise duty of less than EUR 115 per 1 000 cigarettes, after the expiry of the transitional period granted until 31 December 2017, Hungary has failed to fulfil its obligations under Article 10(2) and (3) of Council Directive 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied to manufactured tobacco;

2. Orders Hungary to pay the costs.