Brussels, 20/03/2007 (Agence Europe) - on 28 March, the Commission is expected to adopt its Green Paper on tax policies for environmental, economic and social targets in the area of sustainable development. This is one of the major points of information revealed at the opening of the 2007 Fiscal Forum on Monday 19 March, in Brussels, which forms the first stage of the annual meeting on tax policy. László Kovács, Commissioner for tax announced this green paper to the European Parliament's economic affairs committee (EUROPE 9351) at the end of January. It was drafted in collaboration with his colleague, Stavros Dimas, responsible for the environment. This document will kick off the discussion on indirect taxation applicable to the energy, transport and environment sectors.
Kovács said that taxation was a very powerful instrument but was not the only tool for pushing consumers towards sustainable resources. The Commissioner declared that the Fiscal Forum does not intend to examine “new legislative proposals” but provide added momentum to the EU's tax policy strategy by looking at how tax can contribute more in meeting international challenges such as environmental protection. He indicated that the Commission would “very soon” adopt the green paper on sustainable development taxation. He also affirmed that he intended to further develop the “energy tax instrument” during the second half of his mandate. The Commissioner mentioned two legislative proposals that should help towards sustainable development: the recent draft directive on excise taxes on commercial diesel, that aims to fight greenhouse gas emissions created by petrol pump tourism (EUROPE 9385) and the draft directive of July 2005. The latter aims to introduce a uniform European system for taxing private cars, based on CO2 emission performance (EUROPE 8984). On this point, the Commissioner explained that ministers of the economy and finance will be informed about the dossier during their meeting in May.
Stavros Dimas indicated the “Stern” report's recommendations on the economic cost of environmental inaction. He indicated that this report demonstrates “the failure of the market” to deal with climate change on its own and added that it was up to society as a whole to pick up the tab. According to Dimas, “market instruments” are the “most direct tools” for encouraging companies to change behaviour. Dimas also stated that the green paper to be adopted in a few days would give his support to national measures, such as environmental taxes, and open the debate up to, “identifying actions to take at a European level”.
Peer Steinbrück, German finance minister, illustrated the main results from the Spring European Council that had set binding targets for reducing greenhouse gas emissions and renewable energy in energy consumption (EUROPE 9383). He said that Europe was ahead and constituted an active, efficient model for the rest of the world. The acting president of the Ecofin Council cautiously explained that in connection with the draft directive on taxing private cars, “the German presidency is giving to try and make progress” in an attempt to reach a compromise acceptable to economic actors. (mb)