Brussels, 15/11/2000 (Agence Europe) - On Wednesday, the European Commission proposed renewal of certain tax exemptions applied to oil products. It thus endorses the partial exemptions on diesel fuel granted by France, Italy and the Netherlands to ease the road transport situation (all three countries had taken contrary commitments with their European partners). These will nonetheless come to an end on 1 January 2003.
The European Commission proposal looks at a total of 103 derogations to European legislation on oil duties solicited by each Member States for various products (see EUROPE of 2 and 3 December, pages 7-8). It foresees the prolongation for 5 years of the exemptions that appear to be "in accordance with Community policies in the fields of the environment, energy or transport, and which do not lead, initially, to distortions in competition contrary to Community interests", such as for example, for fuels used by local public transport or the differentiation in taxes on fuels in relation to the environmental categories. Very often, the Commission foresees to remove the possibility for the automatic prorogation of these measure, in order to guarantee their periodic re-examination. On the other hand, a series of provisions it considers unjustified or have become contrary to Environmental legislation would be rapidly removed. The derogations in favour of used oils that did not give a priority to regeneration would thus be abolished immediately. A gradual elimination of the maximum duration of two years is also foreseen for the derogation given for private flights and private pleasure boats.
The reduction of duties for diesel aimed at utility vehicles forms no doubt the most problematic aspect of the project. Considered as a bad answer to the rise in oil prices, it raised the reservations of several European Commissioners (Mrs de Palacio, responsible for Transport and Energy, Mrs Wallström responsible for the Environment and Mrs Schreyer, responsible for the Budget). Following a project report last week, Commission Bolkenstein - direct head for the dossier - finally proposed that these tax breaks only apply for a maximum duration of two year non-renewable. This Wednesday, three Commissioner felt it necessary to make further comments: Mrs de Palacio and, for other reasons, the two French Commissioner, Mr Lamy and Mr Barnier. To be definitively approved, this project will have to be unanimously approved by the Council, before 31 December 2000.