Without debate, the European Finance Ministers unanimously agreed on Friday 8 November on the legislative package on excise duties comprising two texts: - a Regulation on administrative cooperation concerning the content of the electronic register; - a Directive on the general arrangements for excise duty (see EUROPE 12360/2).
Finnish Finance Minister Mika Lintilä recalled that the objective of this legislative package was to align customs and administrative procedures for excisable products, such as alcohol, tobacco and energy. The new rules will also bring “simplicity to the intra-EU movements” of the products concerned, while ensuring adequate tax collection by Member States and reducing costs and administrative burden for small businesses, he added.
See the legislative texts: https://bit.ly/34Jpcke
Persistent blocking on a third text on excise duties
The agreement on this legislative package was made possible thanks to a constructive attitude on the part of the new Romanian government, which put an end to the blockage caused by its predecessor.
Because of this success, Bucharest was hoping for the same result on a third text, a legislative proposal amending Directive (92/83) harmonising the structures of excise duties on alcohol and alcoholic beverages (see EUROPE 12211/15).
On Friday, however, the ECOFIN Council failed to approve the third proposal on the table.
The issue: opposition from the Czech Republic and Bulgaria. Prague mentioned public health reasons, as home distillation of alcohol is, in its view, a way to increase alcohol consumption. The Czech Republic has argued that the individual production of alcohol is strictly controlled on its territory and is entrusted to fruit producers.
On the basis of the Czech position, Bulgaria opposed the compromise text on the table, while expressing its readiness to accept the maximum threshold of 50 litres of fruit alcohol distilled by private individuals, which would be subject to a reduction of up to 50% in excise duty rates.
Romania, which wants this maximum threshold of 50 litres proposed by the Finnish Presidency of the EU Council to be increased to 100 litres, expressed its “deep disappointment” because of the positions expressed by the Czech Republic and Bulgaria.
Further discussions are needed, Mr Lintilä said, urging Member States to show a spirit of compromise in order to reach agreement at the December Ecofin Council. (Original version in French by Mathieu Bion)