Brussels, 05/02/2007 (Agence Europe) - On Thursday 15 February, Taxation Commissioner László Kováks is due to present a draft directive to adjust the minimum level of taxation on commercial diesel used by the road transport sector. The working document - which lists the various options considered by the Commission and of which EUROPE has obtained a copy - suggests setting a minimum tax level of €359 for 1000 litres of fuel from 2012, then €380 from 2014. So as not to increase fiscal pressure too much at a time when oil prices are high, the Commission will not propose automatic indexation of the minimum level. It has also abandoned the idea of a maximum level of taxation, thus allowing member states to set their own levels above the minimum European level. Those states which joined the EU after 2004 and which have been granted transition periods will have to respect the new limits as soon as these periods come to an end. This draft directive, which has to be approved unanimously by member states in the Council, will amend directive 2003/96/EC on taxing energy products.
The Commission's aim is to avoid petrol pump tourism which leads to different taxation in the member states. Many international road hauliers are prepared to make wide detours to fill up their tanks in member states where taxation is low. The Commission believes its proposal will also help the environment insofar as it will reduce the detours taken to find the cheapest diesel and so will reduce polluting emissions into the atmosphere. Currently, the minimum taxation level on diesel is €302, and it will rise to €330 in 2010. The minimum taxation level on lead-free petrol is €359. The Commission's draft directive aims then to align the minimum taxation levels of commercial diesel and petrol. The differences in the minimum levels of taxation on diesel across the EU are considerable: nine countries which have been granted transition periods following their accession to the EU have a minimum level somewhere between €220 and €294; thirteen member states apply a minimum level of between €300 and €400; five member states have a minimum level above €400 (€693 for the United Kingdom).
The draft proposal is the result of a public consultation exercise launched in August 2006 (see EUROPE 9245 and 9333). The Commission proposed three options: - the status quo; - putting the (since withdrawn) 2002 proposal, which recommended total harmonisation of excise duties at a level of €400 in 2018 (see EUROPE 8588), back on the table; - bringing national excise levels closer, within a fluctuation band defined at European level and not exceeding €100 in 2010. (mb)