EN Official Journal of the European Union CE 88/653

(2004/C 88 E/0670)

WRITTEN QUESTION E-3868/03

by Piia-Noora Kauppi (PPE-DE), Riitta Myller (PSE), Samuli Pohjamo (ELDR) and Ari Vatanen (PPE-DE) to the Commission

(16 December 2003)

Subject: Taxation temperature of fuel

In Finland, during recent years we have witnessed a continuous debate about the correct interpretation of EU Council Directive 92/81/EEC (1) on the harmonisation of the structures of excise duties on mineral oils. In the prior legislation on fuel taxes, the starting point was taxation based on volume in litres. This meant that fuel was taxed on the basis of the temperature of fuel at the time of loading it into a tank lorry at the terminal. On average, the temperature was + 8 °C.

The new Directive, on the other hand, is based on so-called taxation on normal litres (+ 15 °C). Article 3 (1) of Directive 92/81/EEC of the Council of the EU, translated into Finnish, provides for each Member State to levy a special excise duty on mineral oils, to be calculated per 1,000 litres for the product at 15°C.

According to section 5 of the act on excise duties on liquid fuels (29 December 1994/1472) enacted on the basis of the Directive and currently in force in Finland, excise duty and precautionary stock fee shall be levied on the product at 15 °C. Finland's mean temperature is + 8 °C, not + 15 °C as it is in central and southern Europe. For tax purposes, the difference in temperature is 7 degrees.

Different Nordic countries, i.e. Sweden, Denmark, and Norway, have a different approach in interpreting the said Directive. Denmark was already a member of the EU when taxation was changed so that the tax on fuel was to be levied on the basis of normal litres (+15°). Denmark has construed the new tax directive so that the Danish tax legislation meets the minimum tax level required by the EU Directive. Denmark continues to levy taxes based on volume in litres. On the other hand, Sweden and Finland joined the EU at the same time in 1995. Sweden was aware of how Denmark operated. According to the interpretation complied with in Sweden, a tax can be levied on petrol also based on volume in litres, in other words, based on the true temperature. Norway also levies taxes based on volume in litres.

With reference to what is stated above, we respectfully ask the Commission the following: on the basis of the Directive, can Finland interpret section 5 of the act on excise duties on liquid fuels (29 December 1994/1472) so that the tax on fuel can be levied in Finland based on a temperature of + 8 °C?

Answer given by Mr Bolkestein on behalf of the Commission

(15 January 2004)

The Commission would like to refer to its answer to the written question P-2439/01 (2) by Mr Vatanen.

In its reply the Commission clarified that Article 3 (1) of Council Directive 92/81/EEC of 19 October 1992, on the harmonisation of the structures of excise duties on mineral oils (3), provides for a specific excise duty calculated per 1 000 litres of product at a temperature of 15°C. Directive 92/81/EEC has been repealed as from 1 January 2004 by Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity (4), but again Article 12, paragraph 2 of this new Directive provides that for those energy products the level of taxation of which is based on volumes, the volume shall be measured at a temperature of 15 °C.

During the discussions prior to the adoption of Directive 2003/96/EC, the Council entered a statement in the Council's minutes (5) stating that: ‘In calculating the tax level Member States need not adjust the quantity according to the temperature of each transaction, but may adopt simplified national procedures to take account of variations in temperature. Adjustments for standard temperature shall be calculated on the basis of the tables published by the International Organisation for Standardisation under the references ISO 91/1 — 1982 or any subsequent revision.’

In accordance with Article 6 of 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 (6), excise duty payable on excisable goods shall become chargeable at the time of release for consumption, i.e. at the time of departure of the mineral oils from a tax warehouse, or at the time of their importation. The Commission fully agrees that it is important to ensure that at the time of release for consumption the calculation for taxation purposes of the volume of mineral oils is not altered by temperature effects whatever the season and irrespective of the location from which the release for consumption takes place. During the regular contacts the Commission has with all Member States, either on a bilateral basis or within the context of the Excise Committee, no Member State raised any difficulties so far regarding the application of this provision.

In practice, a common denominator is applied Community wide, which converts the volume of each specific mass of mineral oils, measured under any ambient temperature, to the volume which corresponds to the standard temperature of 15°C. Directives 92/81/EEC and 2003/96/EC do not contain any methodology or guidance to national administrations concerning this conversion, because existing international standards (7), established by specialised international organisations, cover this conversion in a sufficient manner. In fact, these organisations have established detailed scientific tables, containing corrective volume coefficients for each temperature and mineral oil specific mass.

It appears that there is no valid reason for changing the standard temperature from 15 °C to 8 °C, as Member States can easily convert any volume of mineral oils measured under any ambient temperature to the volume which corresponds to the standard temperature of 15 °C. Therefore, the Commission is of the opinion that section 5 of the Finnish act on excise duties on liquid fuels (29 December 1994/1472), which lays down the principle of taxation at 15 °C, is, in principle, compliant with the above-mentioned Directives.

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

(2) OJ C 160, 4.7.2002.

(3) OJ L 316, 31.10.1992.

(4) OJ L 283, 31.10.2003.

(5) Council document 14140/03, PV/CONS 60 Add 1, of 24.11.2003.

(6) OJ L 76, 23.3.1992.

(7) In particular American Society for Testing and Materials (ASTM) tables or International Organisation for Standardisation (ISO) 91/1/1982.