WRITTEN QUESTION E-3335/98

by Michl Ebner (PPE) to the Commission

(10 November 1998)

Subject: Harmonisation of tax on heating oil

In the context of the European integration process and in the spirit of the Schengen Agreement, there is a need to harmonise conditions of competition.

In the field of heating oil tax, differing provisions exist in the different EU Member States, with the result that heating oil costs the equivalent of ITL 495 (ex.-VAT) in Austria, while in Italy it costs around ITL 1 108 (ex-VAT), of which the tax element alone amounts to ITL 747.

People in border areas are unable to benefit from this discrepancy, since it is so complicated and expensive to order heating oil in a neighbouring country that it works out more expensive in the long run than buying it in the country which initially had the higher price.

Can the Commission explain why there are still such wide discrepancies in the taxation of heating oil in the various Member States, in spite of Directive 92/81/EEC(1), which provides for a large degree of harmonisation of excise duties on mineral oils, and Directive 92/82/EEC(2), which calls on the Member States to approximate their excise duties on mineral oils, and why there are virtually insuperable obstacles to buying heating oil from abroad, ranging from a requirement to deposit a bank guarantee on the one hand to monitoring by the Finance Ministry on the other, to the extent that suppliers refuse to deliver abroad?

Answer given by Mr Monti on behalf of the Commission

(14 January 1999)

The collection of excise duty in the Community is currently governed by Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products(3). Article 7 specifies that excise duty is due in the Member State in which the goods are consumed. In the case of mineral oils this rule applies to all products transported from one Member State to another other than in the standard tanks of vehicles. The Italian authorities are therefore correct in insisting that excise duty is paid on heating fuel at the rate applicable in Italy.

Minimum levels of taxation for mineral oil products are set out in Council Directive 92/82/EEC but Member States are free to set levels of taxation in excess of this figure. This has resulted in considerable differences in tax levels between Member States. It is quite correct to say that this problem arises because of these differences and that a greater degree of harmonisation of indirect taxes on energy products would ease problems such as this currently faced by citizens.

For some years the Commission has been endeavouring to persuade Member States of the need for greater harmonisation and the latest Commission proposal for the taxation of energy products(4) addresses the problem of tax induced distortion by extending the tax base to all competing fuels and also proposes substantial increases in the minimum tax levels for energy products. Although the decision on tax levels remains with Member States, it is hoped that this process will lead to greater approximations of tax rates in due course.

The proposal is currently being discussed in the relevant Council working group and an interim report has been presented to the December meeting of the Ecofin Council. The Parliament is also discussing its opinion and it is hoped that this will be adopted early in 1999.

(1) OJ L 316, 31.10.1992, p. 12.

(2) OJ L 316, 31.10.1992, p. 19.

(3) OJ L 76, 23.3.1992.

(4) COM(97) 30.