The provisions of Directive 2003/96/EC on the taxation of energy products no longer make the same positive contribution as when they came into force in 2003, according to a report published on Thursday 12 September by the European Commission.
The European finance ministers will discuss this topic at their informal meeting on Friday 13 and Saturday 14 September (see EUROPE 12324/5).
Ecological aberration. Pierre Moscovici, Commissioner for Economic and Financial Affairs, considers that the rules are outdated and points out that "all the revision attempts proposed by the Commission have been blocked due to a lack of political maturity on the subject". According to him, the report shows that the multiplication of tax loopholes decided by Member States leads, in some cases, to "ecological aberrations", for example the promotion of highly carbonated energies. Moving the political lines on this subject is more than necessary, comments the Commissioner, who is calling for a review of this directive.
According to the report, the current rules do not contribute to the new regulatory framework and new EU climate and energy objectives.
Indeed, technologies, national tax rates and energy markets have evolved considerably over the past 15 years. "The European added value of the Directive has been significantly eroded, in particular due to the lack of indexation of minimum rates, the widely divergent use by Member States of optional tax exemptions and a change in the political environment", the report states. The evaluation also shows that different rates of energy taxation at national level can lead to a "fragmentation of the internal market".
The evaluation concludes that overlaps, gaps and inconsistencies significantly hamper EU objectives in the fields of energy, environment, climate change and transport.
To consult the report: http://bit.ly/2lMJoQS (Original version in French by Lionel Changeur)