Proposal for a Council Decision authorising the Netherlands to apply a reduced rate of excise duty to certain mineral oils, when used for specific purposes, in accordance with the procedure provided for in Article 8(4) of Directive 92/81/EEC
Date: 1999-12-13
Institutions: European Commission
Subjects: Netherlands, excise duty, mineral oil, motor fuel, tariff reduction

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 13.12.1999
COM(1999) 671 final

Proposal for a

COUNCIL DECISION

authorising the Netherlands to apply a reduced rate of excise duty to certain mineral
oils, when used for specific purposes, 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/EEC on the harmonisation of the structures of
excise duties on mineral oils1, 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.

The Dutch authorities have informed the Commission that they wish to apply a different
(lower) rate of excise duty for LPG used by waste collection, drain suction and street cleaning
vehicles. The duty will be NLG 125.56 per 1 000 kg. If the proposal is accepted the lower
duty will apply from 1 May 2000.

It is the Dutch authorities' intention to reduce the use of diesel oil by certain types of vehicles
operating in the urban environment by, inter alia, encouraging them to switch to gaseous fuels
such as LPG. Waste collection, drain suction and street cleaning vehicles are one of these
categories of vehicles. The aim is to reduce NOx emissions in the urban environment by
ensuring that by 2010 between 40% and 60% of these vehicles use gaseous motor fuels.

These vehicles will, however, have to be adapted to run on LPG and this will involve extra
expense. A lower excise duty for LPG would make LPG economically competitive with
diesel oil.

The lower excise duty will apply solely to LPG for this category of vehicles. It will be applied
by refunding the difference between the normal rate of excise duty and the lower rate. This is
relatively easy to do and monitor as the vehicles in question are registered separately for
motor vehicle tax purposes.

In accordance with Directive 92/81/EEC, the other Member States have been informed of this
request.

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 is to present appropriate proposals to
the Council. In any event, this derogation must be reviewed no later than 31 December 2002,
when the authorisation granted by the Decision expires. The Council will review the situation
on the basis of a Commission proposal and decide whether the authorisation should be
withdrawn, amended or extended.

1

OJ L 316, 31.10.92, p. 12. Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.94, p. 46).

2

Proposal for a

COUNCIL DECISION

authorising the Netherlands to apply a reduced rate of excise duty to certain mineral
oils, when 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,

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:

(1)

(2)

(3)

(4)

(5)

(6)

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 introduce
exemptions or reductions in the excise duty charged on mineral oils for special policy
considerations.

The Dutch authorities have informed the Commission that they wish to apply a
different (lower) rate of excise duty for LPG used by waste collection, drain suction
and street cleaning vehicles as part of a plan to reduce NOx emissions in the urban
environment by reducing the use of diesel fuel.

The other Member States have been informed thereof.

The Commission and all the Member States accept that the application of a different
(lower) rate of excise duty for LPG used by waste collection, drain suction and street
cleaning vehicles will not give rise to distortions of competition or hinder the
operation of the internal market.

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.

The Netherlands has requested authorisation to apply a different (lower) rate of excise
duty for LPG used by waste collection, drain suction and street cleaning vehicles of
NLG 125.56 per 1 000 kg from 1 May 2000; whereas the Council is to review its
application on the basis of a report
than
31 December 2002 when the authorisation granted by this decision expires.

from the Commission no later

2

OJ L 316, 31.10.92, p. 12. Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.94, p. 46).

3

HAS ADOPTED THIS DECISION:

Article 1

In accordance with Article 8(4) of Council Directive 92/81/EEC and notwithstanding the
obligations imposed by Council Directive 92/82/EEC of 19 October 1992 on the
approximation of the rates of excise duties on mineral oils3 and in particular the minimum
rates laid down in Article 7 thereof, the Netherlands is hereby authorised to apply a different
(lower) rate of excise duty for LPG used by waste collection drain suction and street cleaning
vehicles from 1 May 2000 until 31 December 2002.

Article 2

This Decision is addressed to the Netherlands.

Done at Brussels,

For the Council
The President

3

OJ L 316, 31.10.92, p. 19. Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.94, p. 46).

4