Proposal for a Council Decision authorising Italy to apply reductions in 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: 2000-06-27
Institutions: European Commission
Subjects: Italy, excise duty, mineral oil, tax exemption, tax harmonisation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 27.06.2000
COM(2000) 415 final

Proposal for a

COUNCIL DECISION

authorising Italy to apply reductions in 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)

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 for specific policy considerations.

In a series of letters, notably a letter received on 29 June 1999 by the Secretariat-General of
the Commission, the Italian authorities informed the Commission of their intention to apply a
reduced rate for automotive diesel fuel for commercial vehicles.

Italy has changed its system of excise duties on mineral oils to incorporate tax levels based on
the CO2 emissions of fuels. This will result in an annual increase in duty on mineral oils until
2005. Italy wishes to introduce a system whereby road hauliers can request repayment of
excise duties to offset this increase. The scheme is similar to others already in place in the
Netherlands and France.

In accordance with Article 8(4) of the Directive, the Secretariat-General of the Commission
informed the other Member States of the measure proposed by the Italian Government, by
letter dated 28 July 1999.

In accordance with the third subparagraph of Article 8(4) of the Directive, the Commission
sent a Communication to the Council on 10 October 1999 expressing fundamental objections
to the application of the derogation request presented by Italy. Its objections concerned the
measure's sole application to commercial road hauliers and the procedure for refunding duty
to non-Italian hauliers.

Following contacts with Commission officials,
legislation to take these objections into account.

the Italian authorities amended their

Tax differentials in the transport sector are acceptable under state aid rules if they are intended
to ensure the attainment of agreed objectives under the common transport policy, such as
environmental objectives, and also respect the minimum rates of excise duty set out in
Council Directive 92/82/EEC. The Commission can therefore accept the principle of tax
differentials that apply in a non-discriminatory way and seek to temporarily compensate
companies and help them adapt to additional costs that they have to bear as a result of a
change in the tax system on environmental grounds.

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 environmental protection policy, it must present appropriate proposals to the
Council. In any event, this derogation must be examined no later than 31 December 2000,
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, 31.10.1992, p.12. (Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.1994,
p. 46).

2

Proposal for a

COUNCIL DECISION

authorising Italy to apply reductions in 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,

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)

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 grounds of specific
policy considerations.

The Italian authorities have notified the Commission that they wish to apply a reduced
rate for automotive diesel fuel for commercial vehicles from 1 January 1999.

The other Member States have been informed thereof.

The Commission regularly reviews reductions and exemptions to check that they are
the internal market or with Community
compatible with the operation of
environmental protection policy.

The authorisation granted by this Decision is without prejudice to the application of
the rules on state aid.

The Council must examine this Decision on the basis of a proposal from the
Commission no later than 31 December 2000, when the authorisation granted by this
Decision expires.

2

OJ L 316, 31.10.1992, p.12. (Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.1994,
p. 46).

3

HAS ADOPTED THIS DECISION:

Article 1

In accordance with Article 8(4) of Directive 92/81/EEC Italy is hereby authorised to apply a
reduced rate of excise duty on automotive diesel fuel used by road hauliers from 1 January
1999 to 31 December 2000 provided the rate applied complies with the obligations laid down
in 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 5 thereof.

This Decision is addressed to Italy.

Done at Brussels,

Article 2

For the Council
The President

3

OJ L 316, 31.10.1992, p.19. (Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.1994,
p. 46).

4