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Europe Daily Bulletin No. 9384
Contents Publication in full By article 12 / 36
GENERAL NEWS / (eu) eu/taxation

Commission adopts its proposed directive this Tuesday on increasing minimum rate of excise for commercial diesel

Brussels, 12/03/2007 (Agence Europe) - László Kovács, the European commissioner for taxation, is to present a proposed directive this Tuesday, which aims to adjust the minimum rate of taxation on commercial diesel used by the road sector (EUROPE 9359). The Commission will suggest that this minimum rate be set at €359 for 1000 litres of fuel as of 2012, then at €380 from 2014. This proposed directive, which is the result of a specific public consultation (see EUROPE 9245 and 9333), requires unanimity of the Council. It will modify directive 2003/96/EC on the taxation of energy products, which currently sets the minimum rate of excise at €302 for diesel (€330 from 2010) and at €359 for unleaded petrol.

The future legislative proposal has not been without its repercussions within the Commission, leading to a month's delay in its adoption. Before it reached the table of the College, it was opposed by the cabinets of Commissioners Grybauskaitë (budget), Hübner (regional policy), Kallas (administration), McCreevy (internal market) and Reding (information society).

The Commission's aim is to put a stop to the petrol pump tourism brought about by the differences in taxation in the member states for these products. Many international road transporters are prepared to make considerable detours to fill up their vehicles in countries with low taxation. The differences in minimum diesel taxation rates are considerable within the EU. Nine member states- which enjoy transitional periods due to their recent accession- have a minimum rate between €220 and 294, 13 member states apply a minimum rate between €300 and 400 and five member states have a minimal rate above €400 (€693 for the United Kingdom). (mb)

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