Brussels, 28/06/2007 (Agence Europe) - On Wednesday 27 June, the European Parliament's economic and monetary affairs committee voted, for the second time, on the report by Astrid Lulling (EPP-ED, Luxembourg) on the proposal for a directive on adjusting minimum levels of excise duty on alcoholic drinks in line with inflation (see EUROPE 9261). With a small minority of votes (27 for, 17 against and one abstention), it voted in favour of a 4.5% rise in these minimum rates, reflecting price rises since the 2004 enlargement to a 25-member Union. This figure appeared in the last compromise proposal discussed at finance minister level last November, at an Ecofin Council during which the Czech Republic had placed its veto on the proposal by the Finnish Presidency (see EUROPE 9316). The EP will give its consultative opinion on this issue at the plenary session in July, in the knowledge that, according to EP internal rules, no amendment to the draft report is now acceptable.
The compromise on the table “takes 1 May 2004 as its point of departure” and suggests a rise of “just 4.5%” of minimum excise duties, said Laszlo Kovacs on Tuesday 26 June, the day before the vote by the members of the parliamentary committee. The commissioner for taxation was “confident” that unanimous adoption on this basis was possible. He extended his hand to MEPs whose rapporteur had, during first examination of their report, spoken in favour of replacing Directive 92/84/EEC for approximation of excise rates through the establishment of a code of conduct (see EUROPE 9431). He said: “However, I am also aware that some members of the committee have raised a number of interesting issues of principle concerning the functioning of the internal market and the taxation of alcoholic beverages more generally. The Commission services are willing to undertake a study on these questions, in particular: - a) whether more approximation could be achieved by setting both minimum an maximum rates through the establishment of a code of conduct; and b) whether more convergence of excise duties on alcoholic beverages could be achieved by promoting tax competition”. Mr Kovacs nonetheless warned that “such a study would be outside the context of this proposal, which (…) is a simple arithmetical adjustment for inflation. The Commission services are currently preparing a proposal on the structures of excise duties on alcohol and it is in this context that these questions will be addressed”. (mb)