WRITTEN QUESTION E-1996/99 by Michl Ebner (PPE-DE) to the Commission. Abolition of tax privileges for diplomats.
Date: 1999-11-09
Institutions: European Parliament, Provisional data
Subjects: European Commissioner, diplomatic profession, excise duty, fringe benefit, occupational status, tax relief

1.8.2000

EN

Official Journal of the European Communities

C 219 E/63

The Committee on Commerce and Distribution set up by the Commission, which consists of 65 entrepre-
neurs from all branches and sectors of trade (cid:129) including representatives from the wholesale industry (cid:129)
advises the Commission on matters relating to commerce. The Committee has discussed electronic
commerce, competition and the consequences of the introduction of the euro several times during the
last few months and provided the Commission with important information.

The Commission has launched various initiatives to support SMEs in particular, such as SLIM (simpler
legislation for the internal market) (5) and BEST (Business Environment Simplification Task Force) which
aim to create an optimal administrative environment for their activities. This should help businesses,
especially SMEs, to operate more efficiently with fewer costs.

See the conclusions of the Council meeting (industry) of 29.4.1999.

(1) COM(1999) 6 final.
(2)
(3) OJ C 372, 9.12.1997.
(4) Draft under discussion. OJ C 270, 24.9.1999.
(5) COM(97) 618 final, 21.11.1997.

(2000/C 219 E/074)

WRITTEN QUESTION E-1996/99

by Michl Ebner (PPE-DE) to the Commission

(9 November 1999)

Subject: Abolition of tax privileges for diplomats

In the course of the Commission(cid:146)s renewal it was decided last month that in future new Commissioners
would no longer enjoy the tax privileges so long accorded to them. Following this notable and
praiseworthy reform, could the Comission indicate whether in the near future this arrangement will be
extended to the entire diplomatic corps within the European Union?

Answer given by Mr Bolkestein on behalf of the Commission

(22 December 1999)

Tax and duty free privileges for diplomats are based on long-standing reciprocal traditions that have been
codified in general terms in the Vienna Convention from 1961. They are also explicitly provided in
Community legislation (as to VAT, the exemptions are laid down in Article 15(10) of Sixth Council
Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to
turnover taxes (1), while similar exemptions from excise duties are provided by Article 23(1) 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 (2)). They are subject to the conditions
and limitations fixed by the Member States.

At its meeting on 29 September 1999, the Commission decided that all of its members would voluntarily
renounce several of the special privileges traditionally granted to them by the Belgian authorities in their
application of the 1961 Vienna Convention on diplomatic relations. When it comes to expenditures of a
private nature, members of
to claim
exemption from VAT and excise duties on wine and spirits, cigarettes and petrol or to purchase, free of
VAT, a wide variety of items for personal use.

therefore no longer exercise their right

the Commission will

In general, one could argue that in an internal market, privileges of that kind for diplomats of one Member
State posted in another Member State are no longer justified and should be abolished. This would however
require an amendment of current Community legislation and, at this juncture, a unanimous vote of the
Council on a proposal from the Commission. This is a matter that needs careful examination as it
interferes with Member States(cid:146) application of the Vienna Convention. As a consequence, the Commission
has no intention to submit any proposals on this issue in the near future.

(1) OJ L 145, 13.6.1977.
(2) OJ L 76, 23.3.1992.