WRITTEN QUESTION P-2322/00 by Hartmut Nassauer (PPE-DE) to the Commission. Differences in the taxation of diesel fuel in the EU Member States.
Date: 2000-06-30
Institutions: European Parliament, Provisional data
Subjects: European tax cooperation, France, Germany, agricultural machinery, diesel fuel, mineral oil

3.4.2001

EN

Official Journal of the European Communities

C 103 E/117

Does the Council agree that a clear distinction needs to be made between, on the one hand, action to
4.
stop hard drugs being transported from Colombia via Aruba and Cura(cid:231)ao to Europe and, on the other
hand, participation in foreign intervention against a movement which controls part of Colombia (cid:129) the
former being desirable, the latter not (cid:129) and that it is important to distance oneself from the American
viewpoint that the fight against the guerrilla movement is part of the fight against drugs?

5.
How does the Council envisage preventing any European involvement in foreign intervention in a
domestic political conflict in Colombia and preventing Member States from allowing themselves to be
dragged into such conflicts?

Reply

(9 November 2000)

European Union

The
together with
Colombia(cid:146)s government, civil society and the NGOs present in the country. It is aware of the many,
serious interrelated problems facing Colombia, and considers it essential that an integrated approach be
taken to solve these problems.

is monitoring

in Colombia

situation

closely,

the

The Union has repeatedly reaffirmed its intention to support, wherever possible and by the most
appropriate means, the efforts made towards a peace process in Colombia based on observance of
human rights and fundamental freedoms.

The European Union has also reaffirmed the utmost importance of the fight against drugs, which directly
concerns all Member States and their citizens. In this respect Colombia benefits from the Generalised
System of Preferences (GSP) and, since 1990, from the additional temporary SPA system in the fight
against drugs. An agreement was signed in 1995, and is now in force, between the European Union and
the Andean countries on chemical precursors.

Furthermore, the European Union has set up a Mechanism for cooperation on drugs with the countries of
Latin America and the Caribbean, for which the action plan was adopted in April 1999, and which was
endorsed by the Heads of State or Government at the Summit between the European Union, Latin America
and the Caribbean held in Rio de Janeiro in June 1999. The Mechanism, which held its second meeting on
22/23 May 2000 in Lisbon, gives both parties an essential framework for the coordination of their efforts
in combating drugs.

(2001/C 103 E/131)

WRITTEN QUESTION P-2322/00

by Hartmut Nassauer (PPE-DE) to the Commission

(30 June 2000)

Subject: Differences in the taxation of diesel fuel in the EU Member States

German farmers are not permitted to import from France marked diesel fuel (in particular, heating oil), as
this would contravene § 26 of the Mineral(cid:246)lsteuergesetz (Law on excise duty on mineral oils). Tax
treatment of the French diesel fuel is significantly more favourable than that of German diesel fuel, which
means that, because of the national ban on imports, German farmers are forced to pay a higher price than
their French neighbours for their diesel fuel. Such discrimination is only possible because Article 8(2)(f) of
Council Directive 92/81 (1) of 19 October 1992 on the harmonisation of the structures of excise duties on
mineral oils expressly provides that EU Member States may apply total or partial exemptions or reductions
in the rate of duty to mineral oils or other products for the same uses which are used under fiscal control
exclusively for agricultural or horticultural purposes, etc.

1. What action does the Commission intend to take in order to end this state of affairs which
discriminates against German farmers?

C 103 E/118

Official Journal of the European Communities

EN

3.4.2001

Does the Commission have plans for possible harmonisation of legislation on excise duty on mineral

2.
oils within the EU, which would mean uniform taxation of mineral oils in the Member States?

(1) OJ L 316, 31.10.1992, p. 12.

Answer given by Mr Bolkestein on behalf of the Commission

(31 July 2000)

The prices of diesel used as fuel in agriculture for vehicles such as tractors and stationary machinery, as
well as for other uses including heating greenhouses, vary considerably between Member States. Fuel price
differentials are mainly due to differences in tax levels, in particular the way each Member State applies the
fiscal provisions in Community legislation. Differences in competitive structure of the oil markets can also
play a role in determining the level of fuel prices.

German farmers are not forbidden by Community law from buying diesel fuel in France or in another
Member State. Under 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 (1)
(Article 9.3) Member States may provide that excise duty becomes chargeable in the Member State of
consumption if mineral oils already released for consumption in another Member State are transported
using atypical modes of transport (namely by other means than in the tanks of vehicle or in fuel canisters
by private individuals or on their behalf).

in particular Council Directive 92/81/EEC on the harmonisation of the
Under Community legislation,
structures of excise duties on mineral oils (2) (Article 8 (2f)), Member States can apply total or partial
exemptions or reductions in the rate of duty to mineral oils to be used, under fiscal control, exclusively in
agricultural and horticultural works, in forestry and inland fisheries. Therefore, Member States are entitled
not to apply the full minimum rate of excise duty on diesel used as propellant, which is fixed at € 245 per
1 000 litres (Article 5(1) of Council Directive 92/82/EEC of 19 October 1992 on the approximation of the
rates of excise duties on mineral oils (2)), but to apply a rate ranging between € 245 and zero. VAT rates
applied on diesel used for agricultural purposes (16 % in Germany and 19,6 % in France) contribute to
some extent to price differentials on the market.

It is clear, therefore, that each Member State has a discretion to determine the level of excise duty charged
on mineral oils to be used exclusively in agriculture.

A Commission proposal for a Council directive presented in March 1997 (3) aims to modernise the
1.
Community system for the taxation of mineral oils and allow the Community to reap the full benefit of the
single market. This proposal provides (Article 7) a reduced minimum rate of excise duty to be applied
Community-wide on diesel used as propellant in agriculture, the level of which should be fixed in a first
stage at € 32 per 1 000 litres. This proposal should contribute considerably, if adopted, to the approxima-
tion of taxation levels applied by individual Member States on mineral oils used in agriculture.

The Commission has for the time being no plans to propose legislation to harmonise the levels of
2.
taxation of mineral oils used in Community agriculture. Under current circumstances, it seems that such
approach has no chance of being adopted by the Council, since less ambitious proposals, like that of 1997,
have not yet been adopted. The adoption of legislation on fiscal matters has been proved very difficult to
achieve due to the unanimity rule in the Treaty.

(1) OJ L 76, 23.2.1992.
(2) OJ L 316, 31.10.1992.
(3) OJ C 139, 6.5.1997.