COMMISSION OF THE EUBOPEAN COMMUNITIES 
C0M(93) 147 final 
Brussels, 5 April 1993 
Proposal for a 
COUNCIL DECISION 
authorizing certain Member States to apply or to continue to apply to certain 
mineral oils when used for specific purposes, reduced rates of excise duty or 
exemptions from excise duty in accordance with the procedure provided for in 
Article 8(4) of Directive 92/81/EEC 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
Article 8(4) of Council Directive 92/81/EEC1 harmonizing the structure of excise duties on mineral 
oils contains a measure enabling the Council, acting unanimously on the basis of a proposal from the 
Commission, to authorize exemptions or reductions in the rates of duty for specific policy 
considerations. 
The Belgian authorities have made a request in the context of the introduction of an excise on heavy 
fuel oil (HFO) for the first time which is to be considered as transitional in nature. Prior to 1 January 
1993, this product was not subject to any duty. It is the intention of the Belgian authorities to set the 
tax rate at two levels, the lower one of which is to be applied to HFO with a sulphur content below 
1 %. The average rate of duty charged will respect the minimum rate of 13 ecu per tonne prescribed 
in Council Directive 92/82/EEC.2 By 31 December 1995, the rate of duty charged in Belgium on all 
categories of HFO will conform to this level 
The request from Greece set out in this proposal is concerned with the continuation of long standing 
exemptions or reductions which are of limited local application. 
The Italian authorities have requested that relief from excise duty be granted to mineral oils used as 
fuel in the production of alumina in Sardinia. They consider that such a request is justified by the 
heavy energy costs borne by this industry and by the exemption already granted to Ireland in Council 
Decision 92/510/EEC.3 
As required by the Directive, Member States have been notified of these requests. The Commission 
is now making a proposal which will enable the Council to decide if authorisation is to be granted. 
Provision is made in the Directive for the Commission to examine and review these reductions or 
exemptions from time to time. If it should consider that they are no longer sustainable in terms of 
competition or distortion of the operation of the internal market or Community policy in the area of 
protection of the environment, it shall submit appropriate proposals to the Council. In any event, the 
Commission will make such a report to the Council on all exemptions or reductions before 31 
December 1996. 
1 O.J. No. L 316 of 31 October 1992. 
2 idem. 
3 idem. 
Proposal for a 
Council Decision 
authorizing certain Member States to apply or to continue to apply to certain 
mineral oils when used for specific purposes, reduced rates of excise duty or 
exemptions from excise duty, in accordance with the procedure provided for in 
Article 8(4) of Directive 92/81/EEC 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Directive 92/81/EEC of 19 October 1992 on the harmonization of the 
structures of excise duties on mineral oils and in particular Article 8(4) thereof; 
Having regard to the proposal from the Commission, . 
Whereas, pursuant to Article 8 (4) of Directive 92/81/EEC, the Council acting unanimously on a 
proposal from the Commission, may authorize any Member State to introduce exemptions or 
reductions in the excise duty charged on mineral oils for special policy considerations; 
Whereas the Commission has been informed by the Member States concerned of their intention to 
continue to apply certain exemptions or reductions which are already provided for in their fiscal law 
or to introduce exemptions or reductions and to which the procedure provided for under the said 
Article 8 (4) should be applied; 
Whereas the other Member States have been informed thereof; 
Whereas, it is accepted by the Commission, and by all Member States that all of these exemptions or 
reductions are well founded in terms of specific policies and do not give rise to distortions in 
competition or interfere with the working of the internal market; 
Whereas the reductions or exemptions will be continually reviewed by the Commission to ensure 
their compatibility with the operation of the internal market or Community policy in the area of 
protection of the environment; 
Whereas pursuant to Article 8 (6) of Directive 92/81/EEC, the Council is required to review the 
situation at the latest by 31 December 1996 on the basis of a report from the Commission, 
HAS ADOPTED THIS DECISION: 
Article 1 
In accordance with the provisions of Article 8 (4) of Directive 92/81/EEC and notwithstanding the 
obligations laid down in Council Directive 92/82/EEC of 19 October 1992 on the approximation of 
the rates of excise duty on mineral oils, the following Member States are authorized to apply or to 
continue to apply the reductions in rates of excise duties or exemptions from excise duty as herein 
specified: 
1. in the Kingdom of Belgium: 
until 31 December 1995, for a reduction in the rate of duty on heavy fuel oil to encourage the 
use of more environmentally friendly fuels provided that such an incentive is specifically linked 
to sulphur content and provided that the average rate of duty charged on heavy fuel oil respects 
the minimum rate of duty on heavy fuel oil as provided for in Community law; 
2. in the Hellenic Republic: 
to grant relief from the excise duty on mineral oils for fuels intended to be used to power the 
official vehicles of the Department of the Prime Minister, the national police force and the 
metropolitan bishops; 
3. in the Italian Republic: 
to grant relief from excise duty on mineral oils used as fuel in the production of alumina in 
Sardinia. 
Article 2 
This Decision is addressed to the Kingdom of Belgium, the Hellenic Republic and the Italian 
Republic. 
Done at Brussels, 
EN ISSN 0254-1475 
COM(93) 147 final 
DOCUMENTS 
09 
Catalogue number : CB-CO-93-171-EN-C 
ISBN 92-77-54501-1 
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