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Europe Daily Bulletin No. 8552
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GENERAL NEWS / (eu) ep/taxation

EP pursues greener taxation

Strasbourg, 29/09/2003 (Agence Europe) - In a final lap of honour, the European Parliament untangled a large part of the agreement obtained at the Council on energy taxation with their adoption last week of the report by Pierre Jonckheer by 386 vote for, 113 against and 41 abstentions. The Council, which only needs the recommendation of the Parliament in this area from consultation procedure, is expected, no doubt, to stick with the paper defined in the backdrop to the European Summit of March 2003, following six years of negotiations.

The directive sets out the minimum duties for oil products, electricity, gas and coal, with transition periods and derogations for certain sectors. Reaffirming its position in favour of a “greener” taxation, Parliament strengthened support for renewable energies, reduced the deadlines for introducing minimum duty rates and limited exemptions.

It is therefore calling for minimum thresholds to be applied from January 2008, the date when the Kyoto objectives become binding, instead of 2010. Kerosene used in aviation will not be exempt, “as long it is necessary to exempt these products from international obligations”. The EP is hoping that non-polluting forms of energy will be systematically exonerated and that this does not remain a facultative option for Member States. Energy products used in agriculture can only be exempt up to 2007. the EP is hiking the minimum taxation levels for fuels set by the Council, in the belief that it is urgent to further integrate the costs of environmental damage into transport costs.

In a press statement, the Greens welcomed the vote in Parliament, which re-introduced the amendments of rapporteur Jonckheer, against the opinion of the economic committee. The EP also revised its position adopted in 1999, on the basis of the Pat Cox report. The European Environment Bureau also welcomed Parliament's decision. Secretary General of the EEB, John Hontelez, declared that it was essential for Parliament to maintain its progressive position on energy tax and environmental protection in its broadest sense. The EP must now continue to ask for the tax from work to energy taxation, stated Mr Hontelez.

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