11.5.77 Official  Journal  of the European  Communities No C 114/33 
Opinion  on the proposal  for a Council  Directive  on the harmonization  of provisions 
laid down  by law,  regulation  or administrative  action  relating  to the rules  governing 
turnover  tax and  excise  duty  applicable  in international  travel 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 31 of 8 February  1977,  page  5. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 14 January  1977  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
147th  plenary  session,  held  in Brussels  on 30 and  31 March  1977. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community  and,  in particular,  Article  198 
thereof, 
Having  regard  to the request  for an opinion  made  by 
the Council  of the  European  Communities  on 
14 January  1977, 
Having  regard  to the Decision  taken  by its Bureau  on 
25 January  1977,  instructing  the Section  for Industry, 
Commerce,  Crafts  and Services  to draw  up an opinion 
on the matter, 
Having  regard  to the opinion  issued  by the  Section 
for Industry,  Commerce,  Crafts  and  Services  on 
2 March  1977, 
Having  regard  to the  oral  report  made  by  the 
rapporteur,  Mr Marvier, 
Having  regard  to the discussions  at its 147th  plenary 
session  held  on 30 and  31 March  1977  (meeting  of 
30 March), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
unanimously: 
The Committee  approves  the proposal  subject  to the 
comments  set out below: 
1. The  Committee  is pleased  with  the Commission's 
proposal,  which  seeks  to increase  the  VAT  and 
excise  duty  exemptions  enjoyed  by intra-Community 
Done  at Brussels,  30 March  1977. travellers.  It notes  that  currency  depreciation  and 
price  increases  have  considerably  reduced  the  real 
value  of these  exemptions  (which  have  not  been 
changed  since  12 June  1972).  Variations  in exchange 
rates  have  also  led to notable  differences  in the value 
of the exemptions  calculated  in the currency  of each 
Member  State. 
2. The  index-linking  of the  exemption  together 
with  their  annual  review  and  expression  in European 
units  of account  (EUA)  should  put  an end  to these 
shortcomings.  With  reference  to its  opinion  of 
24 November  1971  on the same  subject  (OJ  No C 29 
of 22 March  1972),  the  Committee  endorses  the 
provision  which  enables  travellers  to obtain  a tax 
remission  on  leaving  a Member  State.  However, 
such  remissions  should  not  be allowed  on top  of 
exemptions  on import. 
3. Furthermore,  the  Committee  thinks  that  the 
reasons  given  in support  of the adjustment  of intra-
Community  exemptions  in the  light  of economic 
developments,  also  hold  for the exemptions  granted 
to travellers  returning  from  a non-EEC  country.  This 
exemption  has  remained  fixed  at 25 units  of account 
since  28 May  1969  and  no  longer  accords  with 
the reality  of the  international  situation.  Proposals 
equivalent  to those  worked  out for intra-Community 
travel  should  be submitted  without  delay  for  the 
upward  adjustment  of this  exemption. 
4. Finally,  the Committee  would  point  out that  the 
proposed  measures  can  only  be considered  as being 
a provisional  solution.  The  ultimate  aim  is still  the 
harmonization  of tax  systems,  which  alone  will  put 
an end  to quantitative  restrictions  on Community 
travellers. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI