WRITTEN QUESTION No. 3238/97 by Bill MILLER to the Commission. Excise Duty Harmonization
Date: 1997-10-20
Institutions: European Parliament, MILLER
Subjects: excise duty, single market, tax harmonisation

25. 5. 98

EN

Official Journal of the European Communities

C 158/69

(98/C 158/87)

WRITTEN QUESTION E-3238/97

by Bill Miller (PSE) to the Commission

(20 October 1997)

Subject: Excise Duty Harmonization

Can the Commission give an assurance that the issue of excise duty harmonization will not be allowed to drag on
but will be accorded a measure of priority in order to allow growth in this vital sector?

Answer given by Mr Monti on behalf of the Commission

(18 November 1997)

The  Commission  has  already  made  numerous  proposals  in  the  excise  field  which  would  have  produced  the
measure of harmonization necessary for a tax system in keeping with the needs of an internal market. However,
where Council has adopted proposals, it has done so only after considerable amendment, which has meant that
harmonization still falls well short of what is required to reap the full benefits of an internal market.

Against that background, the Honourable Member will recognize that, while the harmonization of excise duties
remains a priority area for the Commission, it can give no assurance that the current situation will be radically
changed in the near future.

(98/C 158/88)

WRITTEN QUESTION E-3239/97

by Bill Miller (PSE) to the Commission

(20 October 1997)

Subject: Single Market

As Commissioner Monti has indicated that Duty Free is to be abolished for inter EU travellers as of 1 July 1999
as part of the completion of the Single Market, when does he expect to see the elimination of tax discrimination in
the area of Excise Duty which is also part of the completion of the Single Market?

Answer given by Mr Monti on behalf of the Commission

(18 November 1997)

As regards duty free shopping, Council in fact took the decision to abolish it as long ago as 1991. At that time,
however, it also granted a seven and a half year (cid:145)winding down(cid:146) period, so as to permit a smooth transition for all
concerned.

As  regards  tax  discrimination,  it  first  has  to  be  recognized  that  the  term  is  subject  to  widely  differing
interpretations. In Community law its meaning is set out in Article 95 of the EC Treaty which prohibits a Member
State from so taxing the products of other Member States as to put its own domestic products at an advantage.
The Commission invariably takes action against any such tax discrimination which comes to its notice.

Against that background, therefore, it is assumed that the Honourable Member is speaking of (cid:145)tax discrimination(cid:146)
in  a  broad  sense  to  refer  to  the  very  wide  differences  in  tax  rates  which  continue  to  exist  ›  quite  legally  ›
between Member States and different categories of product. This wide divergence is the result of the present
system, based on minimum rates. The Commission is currently studying the issue of excisable goods in the field
of alcolhol and tobacco products and will make a report, together with any appropriate proposals, to Council and
the Parliament.