WRITTEN QUESTION E-2468/00

by Paulo Casaca (PSE), Isidoro Sánchez García (ELDR), Margie Sudre (PPE-DE), Roy Perry (PPE-DE), Mariotto Segni (UEN) and Jean-Claude Fruteau (PSE) to the Commission

(24 July 2000)

Subject: Islands

The Commission is currently studying the possibility of taxing aviation fuel. This would mean a fuel tax on all flights from Community airports.

Is the Commission aware of the EU island regions' extreme dependence on air transport, as it is clearly impossible for them to join the road or rail network (and, in the case of most of the most outlying regions, impossible for them even to use regular sea passenger transport)?

On the basis of Article 299 (2) (for the most outlying regions), Article 158, and Declaration No 30 adopted at Amsterdam, does the Commission intend to propose derogations for links with or between islands as this measure will aggravate the problems caused by their isolation?

Joint answer to Written Questions E-2448/00 and E-2468/00 given by Mr Bolkestein on behalf of the Commission

(12 October 2000)

The Commission is aware of the air-transport situation in the outermost regions.

Echoing the Chicago Convention(1), Council Directive 92/81/EEC of 19 October 1992 on the harmonisation of the structures of excise duties on mineral oils(2) currently imposes an obligatory exemption for fuel for commercial air transport. A proposal for a Council Directive on the taxation of energy products(3), intended to replace Directive 92/81/EEC, allows Members States to opt to tax aviation fuel used on domestic flights and, subject to bilateral agreement, flights between Member States. Furthermore, in a recent communication(4), the Commission proposes that the Member States step up their cooperation in the International Civil Aviation Organisation (ICAO) with a view to introducing taxation of aviation fuel and other instruments with similar effects. This communication is being discussed with Parliament.

As regards the specific circumstances of the outermost regions, Member States could, subject to Community rules, and in particular those on state aids, and in the light of the articles of the EC Treaty cited by the Honourable Members, negotiate derogations in their bilateral agreements.

(1) OJ L 316, 31.10.1992.

(2) The 1944 Chicago Convention, which set up the International Civil Aviation Organisation (ICAO), governs the taxation of fuel already on board an aircraft. The taxation of fuel loaded en route is governed by a large number of bilateral air services agreements (ASAs) either between two Member States or between a Member State and a non-member country. These agreements generally contain a clause exempting from taxation both fuel in transit and fuel supplied in the territory of the contracting parties. ASAs can, of course, be renegotiated to abolish the exemption for fuel supplied on the territory of the contracting parties. Renegotiation could, however, take a lot of time and involve a lot of red tape. Moreover, a change in the tax status of fuel in transit would require the renegotiation of the bilateral ASAs and the relevant provisions of the Chicago Convention.

(3) OJ C 139, 6.5.1997.

(4) Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions: Taxation of aircraft fuel (COM(2000) 110 final).