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Europe Daily Bulletin No. 8183
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GENERAL NEWS / (eu) eu/taxation

Netherlands, Denmark, Italy and France give go-ahead to lower excise duties on fuel

Brussels, 02/04/2002 (Agence Europe) - The Council of the European Union adopted four decision on the application of the Directive 92/81 on the harmonisation of excise duties on mineral oils, authorising:

1) The Netherlands to apply form 1 October 2002 to 31 December 2004 different levels of excise duties on low-sulphur levels in petrol (50 PPM) that will allow for a maximum reduction of 0.0136 EUR per litre of fuel.

2) Denmark to apply from 1 February 2002 to 31 January 2008 different levels of excise duties on heavy fuel and domestic fuels used by some companies, allowing a maximum reduction of 0.0095 EUR per KG of heavy fuel and 0.008 EUR per litre of domestic fuel.

3) Italy to apply from 30 June 2004 different levels of excise duties on mixes used for fuel that include 5% or 25% bio-diesel. Reductions in excise cannot be above the amount of excise that would be applicable to the volume of fuel present in the products benefiting from this reduction.

4) France to apply different levels f excise duties on bio-fuels (mixes used as fuel: "petrol from ethyl alcohol derivatives from agriculture" diesel/ methyl ester vegetable oils. French authorities must give their consent to bio-fuel production units in question by 31 December 2003. These approvals are valid an on-renewable for a maximum of 6 years as from the date the authorisation comes into force.

The French Federation of cereal crops, oilseeds and pulses producers (FOP) explained in a press statement that by allowing "diester" (a bio-fuel for diesel engines utilised in diesel mixes) a specific tax incentive in Italy, France and soon the United Kingdom, the EU officially recognises the key role of this bio-fuel in the security of energy supplies and for the protection of the environment. The FOP is now waiting for the French public authorities to deliver these products to the manufacturers, which is what was promised two years ago.

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