Brussels, 08/05/2008 (Agence Europe) - On Tuesday 6 May 2008, the European Commission formally notified Spain that the excise duty known as the "Impuesto Especial sobre las Ventas Minoristas de Determinados Hidrocarburos" fails to comply with EU law. If the relevant national provisions are not aligned with EU law within two months, the Commission may decide to refer the matter to the European Court of Justice.
Excise duties on mineral oils (hydrocarbons) are harmonised at EU level and are applied by all Member States. Directive 92/12/EEC, article 3(2), provides the possibility for products that are already subject to EU harmonised excise duties to also be subject to other indirect taxes for specific purposes under certain conditions. Spain, in addition to the EU harmonised excise duty on mineral oils ("Impuesto sobre Hidrocarburos"), applies the "Impuesto sobre las ventas minoristas de determinados hidrocarburos" (IVMDH) tax on motor fuel sold at petrol stations. The rate of the tax is, within certain limits determined by Spain's autonomous regions. The revenue is allegedly used to finance the health care system (a responsibility largely devolved to the regions).
The Commission has taken the view that the IVMDH does not fully comply with the requirements set up in Article 3(2) of Directive 92/12/EEC for the following reasons. First, chargeability of the IVDMH is not aligned with that of the harmonised excise duty, since it does not take place at the moment where the products leave the last tax warehouse but at a later stage, when the relevant products are sold to the purchaser in the petrol station. Second, Article 3(2) of Directive 92/12/EEC requires that any other indirect tax on mineral oils must pursue a "specific purpose". The European Court of Justice has already ruled that a "specific purpose", in this context, is "a purpose other than a budgetary one".
The Commission takes the view that the main objective of the tax is to strengthen the autonomy of the regions by providing them with the means to generate tax income and according to the criteria of the Court of Justice, this cannot be considered as a "specific purpose" under the Directive. (O.L.)