Proposal for a COUNCIL DECISION authorising the French Republic to apply or to continue to apply reductions in, or exemptions from, excise duties on certain mineral oils used for specific purposes, in accordance with the procedure provided for in Article 8(4) of Directive 92/81/EEC
Date: 1996-06-25
Institutions: European Commission
Subjects: France, excise duty, mineral oil, pollution control measures, tax harmonisation

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  25.06.1996 
COM(96) 299  final 

Proposal  for  a 

COUNCIL  DECISION 

authorising the French Republic to apply or 
to continue to apply reductions in, or exemptions from, excise duties on 
certain mineral oils used for specific purposes, in accordance with the procedure 
provided for in Article 8(4) of Directive 92/81/EEC 

(presented  by the  Commission) 

-2 

EXPLANATORY  MEMORANDUM 

Under  Article 8(4)  of  Council  Directive 92/81/EEC1  on  the  harmonisation  of  the 
structures  of  excise  duties  on  mineral  oils,  the  Council,  acting  unanimously  on  a 
proposal  from  the  Commission,  may  authorise  any  Member State  to  introduce 
exemptions  from,  or  reductions  in,  excise  duties  on  the  grounds  of  specific  policy 
considerations. 

The French authorities have informed the Commission that they wish to exempt, within 
the limits of an annual quota, liquefied petroleum gas and natural gas from excise duty 
when  they  are  used  as  fuel  for  public  transport  under  a  programme  for  reducing 
pollution, to which the procedure provided for in Article 8(4) should apply. 

The  Member States  have  been  informed  of  this  request  in  accordance  with  the 
Directive. 

The Directive provides for the Commission to review  such exemptions  and reductions 
periodically.  If the Commission considers that they may no longer be applied because 
they  distort  competition  or  the  operation  of  the  internal  market  or  are  incompatible 
with  Community  policy  on  protection  of  the  environment,  it  presents  appropriate 
proposals  to  the  Council.  In  any  event,  the  derogation  shall  be  reviewed  before  31 
December  1998.  The  Council  will  examined  the  situation on  the  basis  of  a  proposal 
from  the Commission and decide whether to abolish, modify or extend the derogation. 

OJNoL316, 31.10.1992, p. 12. 

Proposal  for a 

COUNCIL DECISION 

authorising  the French Republic to apply or 
to continue to apply  reductions  in,  or exemptions from,  excise duties on 
certain mineral oils used for  specific  purposes,  in accordance  with the procedure 
provided  for  in Article 8(4) of Directive 92/81 /EEC 

THE COUNCIL  OF THE EUROPEAN  UNION, 

Having  regard to the Treaty establishing  the European  Community, 

regard 

Having 
the 
harmonisation  of  the  structures  of  excise  duties  on  mineral  oils,  and  in  particular 
Article 8(4) thereof, 

to  Council  Directive 92/81/EEC  of  19 October  1992  on 

Having regard to the proposal  from  the Commission, 

Whereas,  under  Article  8(4) of  Directive 92/81/EEC,  the  Council,  acting  unanimously 
on  a  proposal  from  the  Commission,  may  authorise  any  Member State  to  introduce 
exemptions  from,  or  reductions  in,  excise  duties  on  mineral  oils  on  the  grounds  of 
specific policy  considerations; 

Whereas  the  French  authorities  have  informed  the  Commission  that  they,  as  of  1 
jannuray  1997,  wish  to  exempt  liquefied  petroleum  gas  and  natural  gas  from  excise 
duty  when  they  are  used  as  fuel  for  public  transport  under  a programme  for  reducing 
pollution,  to which the procedure provided  for  in Article 8(4) should apply; 

Whereas the other Member States have been informed  of this  notification; 

Whereas  the  Commission  and  all  the  Member  States  accept  that  such  exemption  is 
justified  on the grounds  of specific  policy  considerations  and that it would  not give rise 
to distortions  of competition or hinder  the operation of the internal  market; 

Whereas  the  Commission  regularly  reviews  reductions  and  exemptions  to  check  that 
they  are  compatible  with  the  operation  of  the  internal  market  or  with  Community 
policy  on protection of the environment; 

Whereas,  under  Article  8(6)  of  Directive 92/81/EEC,  the  Council  is  to  review  the 
situation  no  later 
the 
Commission, 

than  31 December  1996  on  the  basis  of  a  report  from 

A-

Whereas,  the  French  Republic  authorities  have  asked  the  derogation  to  apply  from  1 
January  1997, the Council  shall,  on the basis of  a report from the Commission  review 
this specific derogation before  31 December  1998; 

HAS ADOPTED THIS DECISION: 

- 5-

AdicJeJL 

Until  31 December  1998,  in accordance with Article 8(4) of  Directive 92/81/EEC  and 
without  prejudice  to  the  obligations  laid  down  in  Council  Directive 92/82/EEC  of 
19 October 1992  on  the  approximation  of  the  rates  of  excise  duties  on  mineral  oils,2 
France  is  hereby  authorised  to  apply  an  exemption  from  excise  duty  to  liquefied 
petroleum  gas  and  natural  gas  when used  as  fuel  for  vehicles  used  for  local  public 
transport, within the limits of an annual quota. 

This Decision is addressed to the French Republic. 

Articled 

Done at Brussels, 

For the Council 
The President 

2 

OJ No L 316, 31.10.1992, p. 19. 

4-

BSN 0254-1475 

COM(96) 299  final 

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