WRITTEN QUESTION E-2038/97 by Michl Ebner (PPE) to the Commission (13 June 1997)

Subject: Harmonization of the taxes on heating oil

As part of the process of European integration, it is also necessary to harmonize conditions of competition.

The taxation of heating oil is subject to different rules in the various EU Member States, so that whereas Lit 10 000 will buy 6941 litres of heating oil in Italy, it will buy almost twice as much in Austria (13 571 l), almost three times as much in Germany (18 151 l) and even more than three times as much in England (21 141 l). This additional taxation undeniably has the effect of distorting competition and works to the disadvantage of companies and public administrative authorities in border areas.

1. Why are there still such large and obvious differences in the taxation of heating oil, despite Directive 92/81/EEC ((OJ L 316, 31.10.1992, p. 12. )), which largely harmonized the scope of excise duties on mineral oils and Directive 92/82/EEC ((OJ L 316, 31.10.1992, p. 19. )), which required the Member States to approximate the rates of excise duties on mineral oils?

2. What measures did the Commission deem necessary on the basis of the report on minimum rates of excise duties, which it was asked to present at the end of 1994?

3. What further steps does it intend to take to further the adjustment of heating oil prices to European standards?

Answer given by Mr Monti on behalf of the Commission (30 July 1997)

1. The proposals for directives on the harmonisation of the structures and rates of excise duty on mineral oils which the Commission submitted to the Council in 1987 were based on the assumption that the proper functioning of the internal market required both structures and duty rates to be fully harmonised.

In the event, debate on those proposals led to recognition by the Council and the Parliament that complete rate harmonisation was not, at that stage, feasible and the Commission therefore submitted revised proposals for a system that specified minimum and target rates of duty for mineral oils depending on the use to which they were put. The Council finally adopted a system of minimum rates only, above which each Member State would be free, in setting rates for products, to take account of all the circumstances prevailing in that Member State.

2. Directive 92/82/EEC on the approximation of the rates of excise duties on mineral oil requires that every two years, Council shall examine the rates of duty laid down in that Directive on the basis of a report from the Commission and, where appropriate, after consulting the Parliament, shall adopt the necessary measures. The first such report was submitted in September 1995 ((COM(95) 285. )). This concluded that, before any legislative proposals were submitted, a wide ranging consultation should be carried out.

3. Further to this consultation process and in response to an invitation from the Council, the Commission has now submitted proposals for a global approach to the taxation of energy products ((OJ C 139, 6.4.1997. )). These proposals seek to improve the functioning of the internal market by the use of a phased increase in minimum duty rates on mineral oils designed to lead to greater approximation of national rates.

It should, however, be noted that excise duty represents only part of the cost of the fuel and even if duty rates were totally harmonised there would still be substantial differences in the retail prices paid by consumers in different Member States due to differences in production, transport and marketing costs.