WRITTEN QUESTION E-1259/00

by Alexander de Roo (Verts/ALE) to the Commission

(19 April 2000)

Subject: Imports of environmentally friendly cars

The EU's legislation on the introduction of stringent emission standards for new cars in the year 2005 explicitly calls on the governments of the fifteen Member States not to wait until 2005, but to give temporary tax concessions to cleaner fuels and more environmentally friendly cars which already satisfy the stringent 2005 standards. A number of Member States have already started with such measures.

Can the Commission provide details of this?

Is the Commission itself prepared to make proposals for introducing a similar temporary tax concession with regard to the import duty on environmentally friendly cars from third countries which already satisfy the standards for 2005?

Answer given by Mr Bolkestein on behalf of the Commission

(19 June 2000)

In the Commission's view economic incentives can play an important role in encouraging the introduction of more advanced fuels or vehicles with better environmental performances. Tax differentiation is an important instrument in order to promote an early introduction of vehicles that meet future mandatory standards. Furthermore a voluntary concept of so called enhanced environmentally friendly vehicles (EEV) is introduced in Directive 1999/96/EC of the Parliament and of the Council of 13 December 1999 on the approximation of the laws of the Member States relating to measures to be taken against the emission of gaseous and particulate pollutants from compression ignition engines for use in vehicles, and the emission of gaseous pollutants from positive ignition engines fuelled with natural gas or liquefied petroleum gas for use in vehicles and amending Council Directive 88/77/EEC(1) towards which Member States may use economic incentives. The Commission is currently examining the possibilities of presenting a similar concept for light vehicles.

As far as motor fuels are concerned the Commission proposal adopted in 1997, restructuring the Community system of taxation of energy products(2), allows Member States to apply differentiated rates of energy taxation based on the quality of fuels without formal Commission or Council approval, provided that they comply with the minimum level of taxation set out in the proposal. This proposal is in line with the auto oil directives (Directive 98/69/EC of the Parliament and of the Council of 13 October 1998 relating to measures to be taken against air pollution by emissions from motor vehicles and amending Council Directive 70/220/EEC(3) and Directive 98/70/EC of the Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC)(4), but it is still under discussion by the Council.

As far as indirect taxation on motor vehicles is concerned, so far there is little Community legislation or harmonisation of national fiscal provisions applied by the Member States. Approximation of vehicle taxation levels proved very difficult to achieve due to the unanimity rule needed for decisions on fiscal matters.

The Commission intends to present a communication on vehicle taxation, in order to launch a discussion with Member States and other Community institutions on future options for action at Community and national levels, including the issue of incentives to promote more advanced fuels or more environment friendly cars.

Finally, concerning possible temporary concessions to import duties on environmentally friendly cars, it should be pointed out that such measures must respect the Community's obligations in the World Trade Organisation. It would, therefore, be most appropriate to explore such possibilities with the Community's trading partners. Any modification of relevant duty rates is an option which could be explored together with Member States in the context of the preparation for a new and comprehensive round of trade negotiations.

(1) OJ L 44, 16.2.2000.

(2) COM(97) 30 final.

(3) OJ L 350, 28.12.1998.

(4) OJ L 350, 28.12.1998.