Proposal for a COUNCIL DECISION authorising Member States to continue to apply to certain mineral oils, when used for specific purposes, certain existing reduces 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: 1996-12-13
Institutions: European Commission
Subjects: derogation from EU law, excise duty, mineral oil, tax exemption, tax harmonisation

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  13.12.1996 
COM(96) 680  final 

Proposal for a 

COUNCIL  DECISION 

authorising Member States to continue to apply to certain mineral oils, when used for 
specific purposes, certain existing 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 

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 grounds of specific policy considerations. 

Article 8(6) of Directive 92/81 requires the Commission to report to the Council who will 
then  review  all  existing  derogations  by  31  December  1996 and  unanimously  determine 
whether any or all of them shall be abolished, modified  or extended after  consultation of 
the  European  Parliament.  The  Commission  report,  together  with  a  draft  proposal,  has 
been submitted to the Council which has started to consider the matter. 

However, a number of existing derogations expire on 31 December  1996 and in view of 
the comprehensive nature of the Commission report, it is unlikely that the Council will be 
in  a  position  to  reach  a  final  decision  by  that  date.  In  consideration  of  this,  the 
Commission has been asked by the Member States concerned to submit a proposal for an 
extension until 30 June  1997. This proposal does not amend any of the derogations in any 
way, it merely extends them to give the Council and Parliament time to consider and act 
on  the  Commission's  comprehensive  proposal  without  the  risk  of  creating  a  legal 
vacuum at the end of this year when those derogations expire. 

»  OJ No L 316, 31.10.92. 

Proposal for a 

COUNCIL DECISION 

authorising Member States to continue to apply to certain mineral oils, when used  for 
specific purposes, existing 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 UNION, 

Having regard to the Treaty establishing the European Community; 

Having  regard  to  Council  Directive  92/81/EEC  of  19  October  1992  on  the 
harmonisation  of  the  structures  of  excise  duties  on  mineral  oils2  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 authorise any Member State to 
continue to apply exemptions or reductions  in the excise duty charged on mineral oils 
for special policy considerations; 

Whereas, a number of derogations expire on 31 December 1996 and the Member States 
have asked for them to be extended for a further  limited period; 

HAS ADOPTED THIS DECISION: 

2 

OJ No L 316, 31.10.1992, p. 12 Directive as amended by Directive 94/74/EC (OJ No 365, 
31.12.1994, p. 46). 

Article 1 

In accordance with the provisions of Article 8 (4) and Article 8 (6) of Directive 92/81/EEC and 
notwithstanding  the obligations imposed  by  Directive  92/82/EEC of  19 October  1992  on the 
approximation of the rates of excise  duties  on mineral  oils3, the following  Member  States arc 
authorised to  continue  to  apply  the  reductions  in  rates  of  excise  duties  or  exemptions  from 
excise duty herein specified for the period from 1 January 1997 until 30 June 1997: 

1. 

in the Kingdom of Belgium: 

for  a reduction in the rate of excise duty on heavy rue] oil to encourage the use of 

more  environmentally  friendly  fuels.  Such  reduction  shall  be  specifically  linked  to  sulphur 
content  and  the  weighted  average  rate  of  duty  charged  on  heavy  fuel  oil  shall  respect  the 
minimum rate of duty on heavy fuel oils as provided for in Community law. In no case can the 
reduced rate fall below ECU 6.5 per tonne. 

2. 

in the Kingdom of Denmark: 

-for the application of differential  Tates of excise duty between petrol distributed  from 
petrol stations equipped with a return system for petrol fumes Lind petrol distributed 
from  other petrol stations, provided that such rates at all times respect the minimum 
rates of excise duty on mineral oils as provided for under Community law. 

3. 

in the French Republic 

-for the consumption on the island of Corsica, provided that the reduced rates at all 
times respect the rninimum rates of duty on mineral oils as provided for under 
Community law. 

4. in the Italian Republic: 

for a reduction in the rate of excise duty on mineral oils used us fuel in the production of 
alumina in Sardinia, provided that the rate of duty respects the minimum rates of duty 
on mineral oils as provided for under Communitay law, 

for a reduction in the excise duty on fuel  oil, for the production of steam, and for gas oil, 
used in ovens for drying and 'activating' molecular sieves in Reggio Calabria; provided 
that the rate of duty respects the minimum rates of duty on mineral oils as provided for 
under Community law, 

for a reduction in excise duty on petrol consumed on the terri I ory of Friuli-Venezi a 
Giulia, provided that the rates of duty respect the minimum rute provided for under 
Community law. 

OJ No L 316, 31.10.1992, p.  12 Directive as amended by Directive 

3 
94/74/EC, OJNo 365, 31.12.1994, p. 46 

5. 

in Ireland: 

for  differential  rates  of  tax  on  unleaded  petrol  to  reflect  different 
environmental  categories,  provided  that  such  rates  at  all  times  respect  the 
minimum rates of duty on mineral oils as provided for in Community law. 

6. 

in the Grand Duchy of Luxembourg: 

for a reduction in the rate of excise duty on heavy fuel oil to encourage the use 
of  more  environmentally  friendly  fuels.  Such  reduction  shall  be  specifically 
linked  to  sulphur  content  and  the  weighted  average  rate  of  duty  charged  on 
heavy  fuel  oil  shall  respect  the  minimum  rate  of  duty  on  heavy  fuel  oils  as 
provided  for  in  Community  law.  In no  case  can the  reduced  rate  fall  below 
ECU 6.5  per tonne. 

7. 

in the Republic of Austria: 

for  an exemption  from  excise  duty  on  waste  oils  which  are  re-used  as  fuel, 
either directly  after  recovery,  or following  a recycling  process  for  waste oils, 
and the re-use of which is subject to duty, 

natural gas and methane. 

8. 

in the Portuguese Republic: 

for a reduction in excise  duty on fuel  oil  consumed  in the autonomous  region 
of  Madeira;  this  reduction  may  not  be  greater  than  the  additional  costs 
incurred in transporting the fuel oil to that region. 

9 

in the Republic of Finland: 

for  an exemption  from  excise  duty  on  waste  oils  which  are  re-used  as  fuel, 
either directly  after  recovery,  or following  a recycling  process  for  waste oils, 
and the re-use of which is subject to duty. 

10.  in the Kingdom of Sweden: 

for  an exemption from excise  duty on aviation gasoline  and aviation kerosene 
used for private pleasure flying, 

for  differential  rates  of  tax  on  unleaded  petrol  to  reflect  different 
environmental  categories,  provided  that  such  rates  at  all  times  respect  the 
minimum rates of duty on mineral oils as provided for in Community law. 

11.  in the United Kingdom of Great Britain and Northern Ireland: 

for  differential  rates  of  tax  on  unleaded  petrol  to  reflect  different 
environmental  categories,  provided  that  such  rates  at  all  times  respect  the 
minimum rates of duty on mineral oils as provided for in Community law. 

Article 2 

This  Decision 
Luxembourg,  Austria,  Portugal, Finland,  Sweden and the United Kingdom. 

to:  Belgium,  Denmark,  France, 

is  addressed 

Italy, 

Ireland, 

Done at 

ISSN 0254-1475 

COM(96) 680  final 

DOCUMENTS 

EN 

02  12 

Catalogue number  :  CB-CO-96-691-EN-C 

ISBN 92-78-13606-9 

Office  for Official  Publications of the European Communities 

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