Brussels, 07/10/2002 (Agence Europe) - On Tuesday, the Danish Presidency will be presenting guidelines to the Ecofin Council in the hope of facilitating a compromise between the Fifteen on the future energy taxation regime. The aim is to reach an agreement before the end of the year, as the Member States undertook to do during the Barcelona Summit. There are still differences at this stage over three issues. A compromise seems, however, to be taking shape regarding the definition of the high energy consuming enterprises.
Possibility of applying national rates below new minimum taxation rates: In June this year, some Member States asked for special authorisation for applying reduced rates to certain high energy consuming enterprises and to companies that have undertaken to reduce their energy consumption and improve environmental protection in the context of agreements with national authorities. This request was rejected by most Member States. The Presidency proposes the following formula: "Member States will have the possibility to establish national rates that are below the new minimum taxation rates for high energy consuming enterprises that conclude agreements with authorities or which are subject to equivalent regimes. These equivalent regimes or agreements must allow the environmental targets to be reached or increased energy output more or less equivalent to that obtained if the normal Community minimal rates had been respected".
Diesel fuel for business use: Spain and France in particular call for exemptions to the tax system to be set in place for fuels used by road hauliers. The Council has so far not reached an agreement on a transitional regime, which would fill the gap until the directive on gas-oil taxation proposed in July by the Commission takes effect. The proposal provides for a difference to be established between haulier gas-oil, that would be taxed at a rate of EUR 350 for one thousand litres by 2010, and the diesel fuel for private use, for which the tax rate would be gradually brought down to the rate of lead-free petrol to reach around EUR 360 for one thousand litres in 2010. The Presidency proposes the following compromise for the directive on energy taxation: 1) General provision: the minimum rate for gas-oil should be EUR 302 for one thousand litres, increased to EUR 330 in 2010. On 1 January 2012 at the very latest, the Council will fix the minimum rates for the period beginning on 1 January 2013. Member States will be able to establish a difference between business and private gas-oil, on condition that they respect the minimum Community rates and that the rate for diesel fuel for business use is not below EUR 302. The Presidency notes that, in a wider view of things, the definition "business use" could include all commercial vehicles of over 3.5 tonnes but, in a narrower view, might only include heavy goods vehicles of over 16 tonnes. 2) Transitional system: For diesel fuel in general, the Member States that are to apply, on 1 January 2003, rates on diesel fuel that are below the Community rate of EUR 302 may benefit from transition periods: (a) until January 2006 for Member States whose national rate for gas-oil is 30-50 euros below the new rate; (b) until January 2007 for States whose national rate is 30-50 euros below the new rate; and (c) until January 2010 for Member States whose national rate is more than 50 euros below the new rate.
Regarding gas-oil for business use, the Member States that apply national rates above EUR 350 for road diesel fuel on 1 January 2003 will have a derogation until January 2005, on condition that the rate is not below EUR 350. Member States whose national rate is below EUR 302 may apply reduced rates on haulier diesel until January 2007 on condition that the resulting rate of taxation is not below EUR 287/1000 litres and that the national rates in force on 1 January 2003 are not reduced.
Duration of transition periods: A majority of Member States are opposed to the ten-year transition period foreseen to allow Portugal, Greece and Luxembourg to adjust to the new regime. In the context of an overall compromise that would include proposals concerning gas-oil for business use, the Presidency proposes the following solution: a transitional period until January 2007 possible in countries that "encounter difficulties" in application of the new rates. Greece would have a derogation until January 2010 to transform its current electricity taxation regime. Ireland could maintain its regime until January 2007 to take its geographical situation into account.
High energy consuming enterprises: The Presidency proposes the following definition: An enterprise whose purchases in energy products represents at least 3% of the value of production or whose national tax on energy amounts to 0.5% at least of added value. The Member States could nonetheless introduce more restrictive criteria, above all based on turnover, procedure and industrial sector.