WRITTEN QUESTION E-2916/01

by Pere Esteve (ELDR) to the Commission

(17 October 2001)

Subject: Introduction of a tax on kerosene

One of the objectives set out in the white paper on transport adopted by the Commission is to banish polluting aircraft from the EU's airspace.

One of the measures being considered by the Commission is the introduction of a tax on kerosene, which is the main fuel used by aircraft. This would give airlines an incentive to update their fleet in order to reduce CO2 emissions.

This Commission initiative aimed at moving towards a more environment-friendly transport model in the EU is to be welcomed.

However, in the case of the Balearic Islands air transport is today a necessity. Alternative transport modes can have only a limited scope: land transport is impossible, while sea transport is restricted in frequency and can only link the islands with the mainland Spanish ports of Denia, Valencia and Barcelona.

In addition, were the kerosene tax to be applied extensively it could come into conflict with the special regime applying to the Balearic Islands, with its measures to reduce the additional costs of island status for both passenger and goods transport.

1. Is the Commission aware of the undesired effects which could arise from the introduction of this tax in regions such as the Balearic Islands where there are no alternatives to air transport?

2. Does the Commission intend to adopt specific measures to cover cases such as this?

Answer given by Mrs de Palacio on behalf of the Commission

(6 March 2002)

1. The white paper European transport policy for 2010: time to decide(1) addresses the issues of aviation fuel tax. It notes that the Ecofin Council has already approved a recommendation that the Member States should work together more closely within the International Civil Aviation Organisation with a view to introducing an aviation fuel tax and other instruments with similar effect. The white paper also recognises that an aviation fuel tax must be non-discriminatory with respect to nationality or status of carrier and within Europe that would mean application to all, including non-Community carriers, operating intra-Community flights. This would mean that all fuel would be taxed at the same rate regardless of region or service.

If there were no agreement at international level, and the Community wished to introduce an aviation fuel tax, the white paper suggests that another option might be to tax only those flights where an alternative mode of transport, such as high speed rail, was available such a system is already applied in Sweden. Such a system would imply that there would be no taxes for flights to and from regions where there are no competing alternative transport modes.

However, if a universal tax were to be introduced, the Spanish authorities could, if they wished, counter-balance the negative effects of the tax for the inhabitants of the Balearic Islands imposing a public service obligation in accordance with Article 4 of Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Community air carriers to intra-Community air routes(2). Alternatively, for transport of passengers only, they could decide that the services have a social character and provide aid, directly to the passengers, provided that the provisions of the EC Treaty, Article 87.2.a. (ex Article 92) were respected (in particular the condition of non-discrimination among service providers).

2. The Commission is also looking at a range of other market based and technical measures to reduce emissions from aviation and will ensure that the interests of remote regions is kept in mind when making proposals on this work.

(1) COM(2001) 370 final.

(2) OJ L 240, 24.8.1992.