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ECOFIN: Sweden Fin Min:EU Countries Reach Deal On Tobacco Tax

BRUSSELS -(Dow Jones)- European Union countries Tuesday reached a deal to further harmonize taxes on tobacco products sold in the bloc, Swedish Finance Minister Anders Borg told a news conference.

EU countries have different tax rates on cigarettes and other tobacco products. Eastern European countries that joined the bloc in 2004 generally have lower rates than older EU members.

The bloc has been trying to raise tobacco taxes in these countries, both for health reasons and to prevent smuggling and black-market tobacco sales.

Borg, who chaired the regular monthly meeting of EU finance ministers, said this agreement was important for health reasons and for EU states' tax revenue.

-By Adam Cohen, Dow Jones Newswires; +322 741 1486; adam.cohen@dowjones.com

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