# Council Implementing Decision (EU) 2015/356Show full title

Council Implementing Decision (EU) 2015/356 of 2 March 2015 authorising the United Kingdom to apply differentiated levels            of taxation to motor fuels in certain geographical areas, in accordance with Article 19 of Directive 2003/96/EC         

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U.K.

# Council Implementing Decision (EU) 2015/356                     

# of 2 March 2015

# authorising the United Kingdom to apply differentiated levels of taxation to motor fuels in certain geographical areas, in                        accordance with Article 19 of Directive 2003/96/EC                     

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of                           energy products and electricity(1), and in particular Article 19 thereof,                        

Having regard to the proposal from the European Commission,

Whereas:

(1)By letter of 2 February 2014, the United Kingdom requested authorisation to apply a reduced rate of excise duty on gas oil                              and unleaded petrol, supplied as motor fuel to road vehicles, in accordance with Article 19 of Directive 2003/96/EC, in the                              geographical areas covered, on the date of the notification of this Decision, by the postcode districts of IV54 (Highland,                              Scotland), IV26 (Highland, Scotland), IV27 (Highland, Scotland), NE48 (Northumberland, England), PH41 (Highland, Scotland),                              KW12 (Highland, Scotland), PA80 (Argyll and Bute, Scotland), PH36 (Highland, Scotland), IV22 (Highland, Scotland), PA38 (Argyll                              and Bute, Scotland), PH23 (Highland, Scotland), PH19 (Highland, Scotland), IV21 (Highland, Scotland), LA17 (Cumbria, England),                              EX35 (Devon, England), IV14 (Highland, Scotland) and in the geographical area covered, on the date of the notification of                              this Decision, by the post town of Hawes (North Yorkshire, England). The United Kingdom provided additional information and                              clarifications on 3 June and 17 September 2014.

(2)In those areas, the prices of gas oil and unleaded petrol, supplied as motor fuel to road vehicles, are higher than the average                              prices in the rest of the territory of the United Kingdom, placing local fuel consumers at a disadvantage. The price difference                              is due to additional per unit costs induced by the geographic location of those areas, their low population numbers and the                              delivery of relatively low volumes of fuel.

(3)The reduced rates of taxation should be above the minimum rates laid down in Article 7 of Directive 2003/96/EC.

(4)In view of the specific nature of the areas to which it applies and the moderate reduction in the rate, which reduction only                              partially alleviates the higher costs incurred in the geographical areas in question, the measure is not expected to give                              rise to any movement for the purpose of supply of fuel.

(5)Consequently, the measure is acceptable from the point of view of the proper functioning of the internal market and of the                              need to ensure fair competition, and it is compatible with the Union's health, environment, energy and transport policies.

(6)In accordance with Article 19(2) of Directive 2003/96/EC each authorisation granted under that Article is to be strictly limited                              in time. In order to provide the businesses and consumers concerned with a sufficient degree of certainty, the authorisation                              should be granted for a period of six years. However, in order not to undermine future general developments in the existing                              legal framework, it is appropriate to provide that, should the Council, acting on the basis of Article 113 of the Treaty on                              the Functioning of the European Union (TFEU), introduce a modified general system for the taxation of energy products with                              which the authorisation granted in this Decision would not be compatible, this Decision should expire on the day on which                              the rules of that modified system become applicable.

(7)This Decision is without prejudice to the application of Union rules regarding State aid,

HAS ADOPTED THIS DECISION:

# Article 1U.K.

1.The United Kingdom is hereby authorised to apply a reduced rate of excise duty on gas oil and unleaded petrol, supplied as                        motor fuel to road vehicles, in the geographical areas covered, on the date of the notification of this Decision, by the postcode                        districts of IV54 (Highland, Scotland), IV26 (Highland, Scotland), IV27 (Highland, Scotland), NE48 (Northumberland, England),                        PH41 (Highland, Scotland), KW12 (Highland, Scotland), PA80 (Argyll and Bute, Scotland), PH36 (Highland, Scotland), IV22 (Highland,                        Scotland), PA38 (Argyll and Bute, Scotland), PH23 (Highland, Scotland), PH19 (Highland, Scotland), IV21 (Highland, Scotland),                        LA17 (Cumbria, England), EX35 (Devon, England), IV14 (Highland, Scotland) and in the geographical area covered, on the date                        of the notification of this Decision, by the post town of Hawes (North Yorkshire, England).                  

In order to avoid any overcompensation, the reduction of the standard national rate of taxation for gas oil or unleaded petrol                     respectively shall be no greater than the additional cost of retail sales in those geographical areas, compared with the average                     cost of retail sales incurred in the United Kingdom and the reduction shall be no more than GBP 50 (EUR 64) per 1 000 litres                     of product.                  

2.The reduced rates shall comply with the requirements of Directive 2003/96/EC, and in particular with the minimum rates laid                        down in Article 7 thereof.                  

# Article 2U.K.

This Decision shall take effect on the date of its notification.

It shall expire six years thereafter. However, should the Council, acting on the basis of Article 113 of the TFEU, introduce                     a modified general system for the taxation of energy products with which the authorisation granted under Article 1 of this                     Decision would not be compatible, this Decision shall expire on the day on which the rules of that modified system become                     applicable.                  

# Article 3U.K.

This Decision is addressed to the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 2 March 2015.

*For the Council*                            

*The President*                            

D. Reizniece-Ozola                            

1

OJ L 283, 31.10.2003, p. 51.