EN Official Journal of the European Union CE 88/582

(2004/C 88 E/0595)

WRITTEN QUESTION E-3753/02

by Kathleen Van Brempt (PSE) to the Commission

(20 December 2002)

Subject: Kerosene tax

For some years now, the Commission has received questions from MEPs about the introduction of a kerosene tax. Each time, the Commission says that it supports the introduction of such a tax but that no agreement can be reached at international level. And so, here we are, some years down the line, and still waiting for a proposal.

1. When will the Commission submit a proposal for the introduction of a kerosene tax?

2. If the Commission is unable to submit a proposal in the near future, can it indicate why and what are the obstacles thereto?

3. Can the Commission indicate which Member States are in favour of a kerosene tax and which are against?

Answer given by Mr Bolkestein on behalf of the Commission

(5 February 2003)

With regard to the existing compulsory exemption from the harmonised excise duty on mineral oils used as fuels for the purpose of air navigation, other than for private pleasure crafts, the Commission can inform the Honourable Member of the following:

1. The Commission has taken a position in favour of abolishing this exemption since 1996 (1). The Commission presented a proposal restructuring the taxation of energy products in March 1997 (2), which includes provisions, under its Article 13, allowing Member States to extend the application of the harmonised excise duty on aviation fuel for domestic flights or, via bilateral agreements, on intra-Community flights carried out by Community carriers. Concerning taxation of kerosene used by international aviation the Commission presented a Communication on aircraft fuel taxation, in March 2000 (3), suggesting, inter alia, to intensify the work within the International Civil Aviation Organisation (ICAO) framework for the introduction of taxation of aircraft fuel, or other measures with similar effects. Following the Community's request, taxation of aircraft fuels appeared on the agenda of the ICAO 33rd Assembly, held in Montreal between 25 September 2001 and 5 October 2001. However, it proved impossible to obtain support from the other ICAO Members, particularly in view of the very unfavourable conditions for aviation following the events of 11 September 2001.

2. The Commission does not intend to submit an additional proposal on taxation of aircraft fuel, as in its opinion this issue is sufficiently covered by its 1997 proposal on taxation of energy products.

3. Discussions on the proposal on taxation of energy products have been intensified in the Council during recent months, and it is hoped that it may be adopted in due course. During the discussions on a potential political agreement, presented by the Danish Presidency in December 2002, it appeared that all but one Member State, could agree that, as a matter of principle, commercial aircraft fuel should be taxed on the same basis as any other fuel. However, it is necessary to take into account the question of competition with third countries, and the avoidance of any distortion of competition with consequent socio-economic implications. Therefore, it is appropriate to pursue the discussion on this matter within the ICAO, and take the decision on whether to tax kerosene used by international aviation if its taxation is allowed at international level. However, the Council could approve the provisions, included in the Commission proposal, providing for the optional application by Member States of a lower level of taxation on kerosene to be used for domestic or intra-Community flights.

(1) OJ C 382, 18.12.1996.

(2) OJ C 139, 6.5.1997.

(3) COM(2000) 110 final.