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What it is

Law frees tobacco manufacturing and wholesale, but the State keeps retail sales

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 13 October 1997. Introduced by: Gobierno.

Official title: Government bill on the regulation of the Tobacco Market and Tax Regulations.

Follow this law

Source: Congreso de los Diputados, file 121/000086· updated 11 Nov

Automatic summary, not yet reviewed

  1. The State monopoly on manufacturing, importing and wholesaling tobacco ends in peninsular Spain, the Balearic Islands, Ceuta and Melilla. Any person or company with legal capacity to trade may do these activities, unless they are bankrupt, have been sanctioned for smuggling or offenses against the Treasury, or hold a tobacco retail outlet.
  2. Opening tobacco factories is free, but an administrative license is required, checking technical capacity, financial solvency and proper storage. Importing and wholesaling are also free with a license, and wholesalers may only supply State retail outlets under uniform conditions across the territory.
  3. Retail tobacco sales remain a State monopoly, run through the Network of Tobacco and Stamp Outlets (except in the Canary Islands). Outlets are awarded through objective competitive processes, and retailers earn a margin of 8.5% on the retail price, or 9% for cigars.
  4. It creates the Comisionado para el Mercado de Tabacos The public agency that oversees the tobacco market to ensure free competition and neutrality. (Commissioner for the Tobacco Market), an autonomous agency under the Ministry of Economy and Finance. It monitors fair competition and neutrality in the market, inspects operators, authorizes surcharge sales points and sanctions violations.
  5. Tobacco advertising or promotions aimed at retail outlets or surcharge sales points are banned, to keep the retail network neutral. Advertising campaigns must be reported in advance to the Commissioner, who may suspend them if they do not comply with the law.
  6. It defines minor, serious and very serious violations, with fines of up to 2 million pesetas for minor ones, 2 to 20 million for serious ones, and 20 to 50 million for very serious ones, which can also mean revoking the concession or canceling the license.

Who it affects

  • Tobacco manufacturers, importers and wholesalers: No longer need a State monopoly: they operate freely with a license and cannot run promotions aimed at retailers.
  • Tobacco and stamp retail outlet holders: They remain State concession holders, are awarded through competitive processes and earn a fixed margin of 8.5% (9% for cigars).
  • Consumers: They buy tobacco at State outlets with prices set by manufacturers and importers and published in the official gazette.
  • Surcharge sales points: They may be authorized to sell tobacco at a surcharge, buying at list prices from their assigned outlet.

Words worth knowing

Expendeduría de tabaco y timbre
A State-authorized establishment that sells tobacco at retail and stamped documents or stamps.
Comisionado para el Mercado de Tabacos
The public agency that oversees the tobacco market to ensure free competition and neutrality.
Punto de venta con recargo
A premises authorized to sell tobacco at a slightly higher price than the State outlet.
Labores de tabaco
Manufactured tobacco products, such as cigars or rolling tobacco.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced13 October 1997Someone registers the text in the Congreso.
  2. Admitted14 October 1997The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendments17 October 1997Groups propose changes.
  4. Committee13 December 1997A committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senate26 February 1998The Senate can pass it, amend it or veto it.
  7. BOE16 April 1998It is published in the Official State Gazette (BOE) and comes into force.
See the 9 official steps on a timeline
Oct 1997Nov 1997Dec 1997Jan 1998Feb 1998Mar 199811. 13 October 1997: Presentación22. 14 October 1997: Comisión de Economía, Comercio y Hacienda Publicación desde 14/10/1997 hasta 17/10/199733. 14 October 1997: Calificación44. 17 October 1997: Comisión de Economía, Comercio y Hacienda Enmiendas desde 17/10/1997 hasta 13/12/199755. 13 December 1997: Comisión de Economía, Comercio y Hacienda Debate de totalidad desde 13/12/1997 hasta 12/02/199866. 12 February 1998: Comisión de Economía, Comercio y Hacienda Informe desde 12/02/1998 hasta 17/02/199877. 17 February 1998: Comisión de Economía, Comercio y Hacienda Aprobación con competencia legislativa plena desde 17/02/1998 hasta 26/02/199888. 26 February 1998: Senado desde 26/02/1998 hasta 16/04/199899. 16 April 1998: Concluido - (Aprobado con modificaciones) desde 16/04/1998 hasta 13/05/1998

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

The same initiative in the other chamber:

Published in the BOE: Law 13/1998, of May 4, on the Regulation of the Tobacco Market and Tax Regulations.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

Read the full method · Report an error