Proposal for a COUNCIL DECISION authorizing certain Member States to apply or to continue to apply to certain mineral oils when used for specific purposes, reduced rates of excise duty or exemptions from excise duty in accordance with the procedure provided for in Article 8 (4) of Directive 92/81/EEC
Date: 1993-04-05
Institutions: European Commission
Subjects: excise duty, mineral oil, substitute fuel, tax exemption

COMMISSION  OF  THE  EUBOPEAN  COMMUNITIES 

C0M(93)  147 final 

Brussels, 5  April 1993 

Proposal  for a 

COUNCIL DECISION 

authorizing certain Member States to apply or to continue to apply to certain 
mineral oils when used for specific purposes, reduced rates of excise duty or 
exemptions from excise duty in accordance with the procedure provided for in 
Article 8(4) of Directive 92/81/EEC 

(presented  by the Commission) 

EXPLANATORY MEMORANDUM 

Article 8(4) of Council Directive 92/81/EEC1 harmonizing the structure of excise duties on  mineral 
oils contains a measure enabling the Council, acting unanimously on the basis of a proposal  from the 
Commission,  to  authorize  exemptions  or  reductions  in  the  rates  of  duty  for  specific  policy 
considerations. 

The Belgian authorities have made a request in the context of the introduction of an excise on heavy 
fuel oil (HFO) for the first time which is to be considered as transitional in nature. Prior to  1 January 
1993, this product was not subject to any duty. It is the intention of the Belgian authorities to set the 
tax rate at two levels, the lower one of which is to be applied to HFO with a sulphur content below 
1 %. The average rate of duty charged will respect the minimum rate of  13 ecu per  tonne prescribed 
in Council Directive 92/82/EEC.2 By 31 December  1995, the rate of duty charged in Belgium on all 
categories of HFO will conform to this level 

The request from Greece set out in this proposal is concerned with the continuation of long standing 
exemptions or reductions which are of limited local application. 

The Italian authorities have requested that relief from  excise duty be granted to mineral oils used as 
fuel  in the production  of alumina in  Sardinia.  They consider that  such a  request  is justified  by  the 
heavy energy costs borne by this industry and by the exemption already granted to Ireland in Council 
Decision 92/510/EEC.3 

As required by the Directive, Member States have been notified  of  these requests. The  Commission 
is now making a proposal which will enable the Council to decide if authorisation is to be granted. 

Provision  is  made in  the Directive  for  the  Commission  to examine and  review  these  reductions  or 
exemptions from  time to  time. If  it  should consider that they are no longer  sustainable in  terms of 
competition or distortion of the operation of the internal market or Community policy in the area of 
protection of the environment, it shall submit appropriate proposals to the Council. In any event,  the 
Commission  will  make  such  a  report  to  the  Council  on  all  exemptions  or  reductions  before  31 
December 1996. 

1 O.J. No. L 316 of 31 October 1992. 

2  idem. 

3 idem. 

Proposal for a 
Council Decision 

authorizing certain Member States to apply or to continue to apply to certain 
mineral oils when used for specific purposes, reduced rates of excise duty  or 
exemptions from excise duty, in accordance with the procedure provided for  in 
Article 8(4) of Directive 92/81/EEC 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty establishing the European Economic Community, 

Having  regard  to  Council  Directive  92/81/EEC  of  19  October  1992  on  the  harmonization  of  the 
structures of excise duties on mineral oils and in particular Article 8(4) thereof; 

Having regard to the proposal from the Commission,  . 

Whereas,  pursuant  to  Article  8 (4)  of  Directive  92/81/EEC,  the  Council  acting  unanimously  on  a 
proposal  from  the  Commission,  may  authorize  any  Member  State  to  introduce  exemptions  or 
reductions in the excise duty charged on mineral oils for special policy considerations; 

Whereas the Commission  has been  informed  by  the Member  States concerned  of  their  intention  to 
continue to apply certain exemptions or reductions which are already provided  for in their fiscal law 
or  to  introduce  exemptions  or  reductions  and  to which  the procedure  provided  for  under  the  said 
Article 8 (4) should be applied; 

Whereas the other Member States have been informed thereof; 

Whereas, it is accepted by the Commission, and by all Member States that all of these exemptions or 
reductions  are  well  founded  in  terms  of  specific  policies  and  do  not  give  rise  to  distortions  in 
competition or interfere with the working of the internal market; 

Whereas  the  reductions  or  exemptions  will  be  continually  reviewed  by  the  Commission  to  ensure 
their  compatibility  with  the  operation  of  the  internal  market  or  Community  policy  in  the  area  of 
protection of the environment; 

Whereas pursuant  to  Article  8  (6)  of  Directive  92/81/EEC,  the  Council  is  required  to  review  the 
situation at the latest by 31 December 1996 on the basis of a report from the Commission, 

HAS ADOPTED THIS DECISION: 

Article 1 

In accordance with the provisions of  Article  8 (4) of Directive 92/81/EEC  and notwithstanding  the 
obligations laid down in Council Directive 92/82/EEC of  19 October  1992 on the approximation  of 
the rates of excise duty on mineral oils, the following  Member  States are authorized  to apply  or  to 
continue to apply the reductions in rates of  excise duties or exemptions  from  excise duty  as  herein 
specified: 

1. in the Kingdom of Belgium: 

until 31 December  1995, for a reduction in the rate of duty on heavy  fuel  oil  to encourage the 
use of more environmentally friendly fuels provided that such an incentive is specifically  linked 

to sulphur content and provided that the average rate of duty charged on heavy fuel  oil respects 
the minimum rate of duty on heavy fuel oil as provided for in Community law; 

2. in the Hellenic Republic: 

to grant relief from the excise duty on mineral oils for fuels intended to be used to power the 
official  vehicles  of  the Department  of  the Prime  Minister,  the national  police  force  and  the 
metropolitan bishops; 

3.  in the Italian Republic: 

to  grant relief  from excise duty  on  mineral  oils  used as  fuel  in  the production  of  alumina  in 
Sardinia. 

This  Decision  is  addressed  to  the  Kingdom  of  Belgium,  the  Hellenic  Republic  and  the  Italian 
Republic. 

Article 2 

Done at Brussels, 

ISSN 0254-1475 

COM(93) 147 final 

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09 

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ISBN 92-77-54501-1 

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