On Wednesday 17 April, the Belgian Presidency of the Council of the EU prepared a compromise proposal on the revision of the energy taxation directive (see EUROPE 13358/12) for the meeting of the working group on tax issues scheduled for Thursday 25 April. According to the document obtained by Agence Europe, it proposes a series of exemptions.
This new compromise was drawn up following the meeting of the high-level working group on tax issues on Tuesday 26 March.
Belgium suggests specific provisions for energy products composed of one or more energy products. It also proposes excluding hazardous waste and municipal waste from the scope, as this could imply a deviation of waste from waste incineration installations towards landfills in the Union, which create methane emissions, and exports to third countries, with a potential hazardous impact on the environment.
The compromise also introduces the exclusion from the scope of dual-use energy products and non-fuel uses of energy products. Electricity used in similar ways should be treated on an equal footing.
In addition, Member States may need to differentiate between commercial and non-commercial use of energy products used as propellants, in order to limit the distortion of competition operators might be confronted with. This includes motor fuel used by hauliers and coach transport.
Lower fuel taxes
The Presidency is also proposing that Member States should be able to exempt or apply the same levels of taxation to extra-Community sea and air transport. In order to give island Member States time to adapt, intra-Community air navigation on flights to or from aerodromes located in these countries would be subject to a zero minimum rate for 10 years, followed by a further transitional period of 5 years before being subject to the normal levels of taxation. Member States could also apply total or partial exemptions to ships providing maritime transport services within a Member State. The text also provides for total or partial exemptions for fisheries.
According to this text, Member States whose real gross domestic product per inhabitant is significantly less than the European average should be able to apply for a transitional period a preferential treatment for the taxation of energy products and electricity used by all households.
In the event of a significant and sustained increase in the average retail price of energy products or electricity, Member States should be allowed, after informing the Commission, to apply reductions in the level of taxation which may be lower than the minimum rates for a limited period.
In cases where the average retail price of an energy product or electricity over a six-month period increases by more than 70% compared to the average retail price over the previous 12 months, Member States would have the option, after informing the Commission, of applying reductions in the level of taxation that can go below the minimum rates.
Read the compromise proposal: https://aeur.eu/f/bvt (Original version in French by Anne Damiani, with Lionel Changeur)