Luxembourg, 09/07/2007 (Agence Europe) - On 5 July, the European Court of Justice ruled that the Italian taxation regime concerning lubricating oils is in line with European law (cases C-145/06 and C-146/06).
The customs authorities of Trento asked the company Fendt Italiana Srl for the taxation chargeable on the sales of mineral oils for the tax year of 2004. In an appeal to the Commissione tributaria di secondo grado di Trento, Fendt cited directive 92/81/EEC, concerning the harmonisation of excise duty on mineral oils. Lubricating mineral oils represent an anomaly from a taxation point of view, as they are most often a petrochemical product, but they are not used as a fuel or combustible and therefore have no influence either on the energy market, or on emissions of CO2 or other greenhouse gases. This peculiarity led to their classification as “energy products used other than as a fuel or combustible”. However, directive 92/81/EEC expressly provides that these products be exonerated from excise harmonisation. But as the Court noted in its ruling, which it returned last Thursday, this directive has in the meantime been replaced by directive 2003/96/EC on the taxation of energy products. This abrogates directive 92/81/CEE and excludes lubricating oils from its scope of application. The consequence is that the member states are now competent to levy tax on energy products, such as lubricating oils, used other than as a fuel or combustible, without being obliged to do so. The case has been returned to the Trento court, which must now rule in the light of this interpretation, which is that the taxes claimed by the customs authority are not incompatible with Community rules. (cd)