No C 232/88 Official Journal of the European Communities 31. 8. 87 
Opinion of the Economic and Social Committee on the elimination of distortions of competition of a 
fiscal nature in the transport of goods by road: study of vehicle taxes, fuel taxes and road tolls 
(communication from the Commission to the Council) 
(87/C 232/24) 
On 5 February 1987 the Commission decided to consult the Economic and Social Committee, under 
the first paragraph of Article 198 of the Treaty establishing the European Economic Community, on 
its communication to the Council concerning the elimination of distortions of competition of a fiscal 
nature in the transport of goods by road: study of vehicle taxes, fuel taxes and road tolls. 
The Section for Transport and Communications, which was responsible for preparing the 
Committee's work on the subject, organized its work at its 175th meeting on 11 February 1987 and 
adopted its opinion at its 178th meeting on 10 June 1987, in the light of the oral report by the 
rapporteur, Mr Moreland. 
At its 247th plenary session on 1 and 2 July 1987 (meeting of 2 July 1987) the Economic and Social 
Committee adopted the following opinion unanimously: 
1. General comments 
1.1. As stated by the Commission in its communication 
the Committee considers that there are five major common 
transport policy aims as regards commercial vehicle 
taxation: 
(a) the harmonization of competitive conditions both 
within and between modes of transport; 
(b) the allocation of economic and social infrastructure 
costs to users; 
(c) sufficient tax revenue for Member States; 
(d) the free flow of goods and persons within the 
Community; and 
(e) making reasonable transit arrangements with 
non-Member States (paragraph 44). 
1.2. As such aims cannot always be reconciled, the 
Committee is not surprised that difficulties have arisen in 
reaching an agreement on commercial vehicle taxation at 
Community level. Indeed the differences in the level of 
vehicle taxation and the different emphasis given by Member 
States as between vehicle taxes, fuel taxes and road tolls have 
contributed to the fact that the Council has talked about 
commercial vehicle taxation for over twenty years without 
resolution. 
1.3. One area of action taken by the Council has been to 
forbid the use of certain specific transport taxes on 
commercial transport, notably a tax on tonne/km 
transported (although such a tax is applied in third countries 
e.g. Austria, Sweden and Yugoslavia). 
1.4. The Committee notes that the Commission has been 
asked by the Council to examine further the elimination of 
distortions of competition of a fiscal nature in the transport 
of goods by road. The report on which this document comments is a result of the Commission's examination. It is 
assumed the Commission will use its report and comments on 
it from the European Parliament, the Economic and Social 
Committee and the Council as a basis for legislative 
proposals in late 1987. 
1.5. According to the Commission's communication 
(paragraph 29) 'In general terms fuel and vehicle taxes 
together account for 4 to 10 % of international haulage 
costs, and vehicle taxes alone about 1 to 5 %. The impact of 
tolls depends heavily on assumptions about mileage on such 
toll roads; consequently they may account for as much as 
4 % of costs in France for the large vehicles using these roads 
as much as possible, to just over 1 % for a Dutch or British 
haulier doing only 25 % of his annual mileage on toll 
motorways. 
1.6. Commercial vehicle taxation 
1.6.1. The Committee notes that the Commission has put 
forward in its communication three options for a solution as 
regards commercial vehicle taxation: 
1.6.1.1. (Option 1). The 1968 proposal on vehicle 
taxes 0) which was supported by the European 
Parliament (2) and the Economic and Social Committee (3) 
and agreed by the Council in principle (4) (but effectively 
vetoed by one Member State). The proposal aimed at 
approximating the tax structures first, to ensure that at least 
H OJ No C 95, 21. 9. 1968, p. 41. 
(2) OJ No C 63, 28. 5. 1969. 
(3) OJ No C 48, 16. 4. 1969, p. 5. 
(4) Council document T/512/78 of 20. 6. 1978. 
31. 8. 87 Official Journal of the European Communities No C 232/89 
marginal costs would be.covered, whilst providing for 
recovering total costs by both fuel and vehicle taxes. 
1.6.1.2. (Option 2). Approximation of the level of tax 
rates aligning on an average Community rate. Implicit in this 
proposal is that taxes should cover related infrastructure 
costs. The Commission suggests that 'approximation' could 
concentrate on raising low vehicle taxes, while leaving higher 
rates unchanged, perhaps subject to a standstill 
arrangement. 
1.6.1.3. (Option 3). At present taxes are levied on a 
'nationality' basis i.e. only the country where the vehicle is 
registered. In contrast the Commission proposes taxation on 
a 'territorial' basis i.e. where the vehicle travels — such as the 
Swedish km/tax basis. 
1.6.1.4. The Committee considers that the Commission 
has implicitly stated a fourth Option (paragraph 63) where it 
suggests trying to approximate vehicle taxes to meet 'average' 
EEC road costs giving credit for fuel taxes already paid on a 
harmonized basis. 
1.7. Fuel tax 
1.7.1. As regards fuel tax the Committee notes that: 
— the Commission repeats its support for its 1973 proposal 
on the structure of mineral oil taxes (5) which it believes 
can and should be adopted in the near future, 
— the Commission recognizes that a major problem is the 
widely divergent rules for diesel motor fuel taxes, both as 
compared with petrol taxes and between Member States 
and suggests trying to approximate existing diesel tax 
rates to a relatively narrow band. It points out that a 
diesel tax near the top of the range would provide better 
coverage of infrastructure costs. 
1.8. Tolls 
1.8.1. As regards tolls, the Commission appears to come 
to no firm conclusion and suggests (paragraph 67) that an 
equitable solution would depend on the chosen solution on 
commercial vehicle tax. However, the Committee notes that 
the Commission does not indicate any need to eliminate 
tolls. 
2. Specific comments (suggested solution) 
2.1. A solution to the problems of commercial vehicle 
taxation is important in the context of the removal of 
(>) OJ No C 92, 31. 10. 1973, p. 36. distortions of competition of the internal market in 1992. 
The Commission should produce detailed proposals 
following its report and the Council should give urgent 
consideration to ensure rapid agreement on such 
proposals. 
2.2. The urgency of agreement on commercial vehicle 
taxation, fuel taxes and tolls is underlined by the problems 
the Community faces in relation to transit through Austria, 
Switzerland and Yugoslavia. A common position on such 
fiscal matters would strengthen the Community's position in 
relation to negotiations to these countries. 
2.3. The Committee considers that the Commission's 
detailed proposals should take account of the following 
points: 
— any solution should not obstruct competition with other 
modes of transport, particularly in the context of 
infrastructure costing. In particular the proposals in the 
information report and the opinion of the Committee 
concerning a common railway policy (2), as well as the 
Commission's proposals on railways infrastructure (3) 
should be acted upon, 
— taxation should, as far as practicable, be related to 
ensuring that the vehicle contributes fully to covering the 
costs it creates, 
— the 'territorial' basis of taxation has an attraction as 
relating revenue to costs incurred. To take this into 
account and also energy saving considerations a fair 
solution could include switching emphasis from taxation 
on the vehicle to fuel tax, 
— discriminatory rebates on vehicle taxes and fuel taxes 
should not be allowed, 
— any solutions must not add to the complexity of taxation 
and the additional administrative burdens. 
2.4. Commercial vehicle taxation 
2.4.1. In the context of 2.2 and 2.3 above the Committee 
suggests that as regards vehicle taxation option 1 is an 
acceptable basis for proposals. 
2.4.2. In the context of 2.2 and 2.3 above the Committee 
suggests that as regards vehicle taxation option 2 is an 
acceptable compromise solution. This should not be simply 
'levelling up' of the Member States with the currently low 
(2) OJ No C 105, 21. 4. 1987, p. 13. 
(3) OJ No C 36,10. 2. 1984, pp. 5 and 11 (proposals); OJ No C 87, 
9. 4. 1985, p. 1 (Committee's opinion). 
No C 232/90 Official Journal of the European Communities 31. 8. 87 
taxes. A possible solution would be a band with the 
minimum tax based on covering marginal costs. 
2.4.3. As option 3 is complex and implies the need for 
frontier controls and tight administration it would be 
inappropriate as a solution for the immediate future. 
Nevertheless the 'territorial' principle has intrinsic 
attractions as an equitable solution and option 3 may be the 
basis for a long-term solution. Although Community policy 
should not be based on this option at present the Commission 
should examine this further at a later stage with the view to 
eliminating the obstacles to its introduction. 
2.4.4. The abovementioned 'unstated option 4' could be 
an acceptable basis for proposals but the Committee can 
foresee difficulties in determining 'average EEC costs'. 
2.4.5. A solution on commercial vehicle taxation may 
cause substantial change from some Member States. 
Consequently changes should be phased in over, say, five 
years. 
2.5. Fuel tax 
2.5.1. The Committee notes the Commission's remarks 
on mineral oil taxes and need for continued examination of 
the subject by the Council. The Council is urged to make 
progress towards agreement. 
2.5.2. The Committee notes that the Commission's 
proposal is to approximate diesel rates to a relative narrow 
band near the top of the range to cover infrastructure costs, 
and believes that at least direct taxes must provide a better 
coverage of infrastructure costs. 
Done at Brussels, 2 July 1987. 2.5.3. A lack of harmonization on fuel tax should not be 
an excuse for any delay to put an end to maximum levels of 
diesel fuel being taken across borders 'duty free'. 
2.6. Tolls 
2.6.1. All tolls should be abolished except on bridges, 
ferries and tunnels, as soon as possible or at the end of 
contractual arrangements. 
2.6.2. The Commission should include in its proposals 
that discriminating rebates related to tolls should not be 
allowed. 
2.7. Other considerations 
2.1 A. The Council is reminded that restrictions on and 
delays in paying refunds of VAT by certain Member States 
imply distortions for road haulage traffic. 
2.7.2. The Commission, in its proposals, should also 
take into account distortions of competition caused by 
purchase tax being levied in addition to VAT on commercial 
vehicles and also of tax allowances and credit facilities 
allowed by some Member States for the purchase of 
commercial vehicles. 
2.7.3. The Commission should also examine differing 
insurance tariffs — particularly from the taxation angle — as 
between Member States which may also affect conditions of 
competition. 
2.7.4. Higher commercial vehicle taxation could add to 
the already high cost of transportation for industry in the 
remoter and less favoured regions of the Community. While 
the Commission should not include derogations in its 
proposal on fiscal aspects of carriage of goods, the 
Community needs to give serious and urgent examination to 
this problem through increased support for the Regional 
Fund. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT