Proposal for a Council Decision authorising France to apply a differentiated 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: 2000-10-17
Institutions: European Commission
Subjects: France, excise duty, mineral oil, motor fuel, tax exemption

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 17.10.2000
COM(2000) 647 final

Proposal for a

COUNCIL DECISION

authorising France to apply a differentiated 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 French authorities have informed the Commission that
they wish to introduce a
differentiated rate of duty on diesel fuel used in local public passenger transport vehicles.
Public transport is more environmentally friendly than transport in private vehicles, and the
differentiated rate will promote the use of public transport. This will be particularly
significant in improving air quality in the urban environment. The differentiated rate of duty
will be implemented by an annual refund system, commencing on 1 January 2001, that will
partly compensate for future annual rises in duty on diesel fuel.

France therefore requests authorisation to apply a differentiated rate of excise duty to diesel
fuel used in local public passenger transport vehicles from 1 January 2001. The differentiated
rates will respect
in Article 5 of Directive
92/82/EEC2.

the minimum rates of excise duty set out

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

Directive 92/81/EEC 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, on the basis of a proposal from the Commission, this derogation must be
reviewed no later than 31 December 2002 when the authorisation granted by this Decision
expires. The Council will review the situation on the basis of a Commission Proposal and
decide whether the authorisation granted under Article 1 of this Decision should be
withdrawn, modified or confirmed.

1

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).
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).

2

Proposal for a

COUNCIL DECISION

authorising France to apply a differentiated 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 oils3, and in particular Article 8(4) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

3

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 specific policy
considerations.

Because public transport is more environmentally friendly than transport in private
vehicles, the French authorities have informed the Commission that they wish to
introduce a differentiated rate of duty on diesel fuel used in local public passenger
transport vehicles by refunding a proportion of future annual rises in duty on diesel
fuel.

The other Member States have been informed thereof.

The Commission and all
the application of
differentiated rate of excise duty on diesel fuel used in local public passenger transport
vehicles will not give rise to distortions of competition or hinder the operation of the
internal market.

the Member States accept

that

This decision does not prejudice the outcome of any future state aid procedures that
may be undertaken in accordance with Articles 87 and 88 of the Treaty, nor does it
override the requirement for Member States to notify instances of potential state aid to
the Commission under Article 88 of the Treaty.

The Commission regularly reviews reductions and exemptions to check that they do
not distort competition or the operation of the internal market or are incompatible with
Community policy on protection of the environment.

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

(7)

(8)

France has requested authorisation to introduce the differentiated rate of duty on diesel
fuel used in local public passenger transport vehicles from 1 January 2001.

The Council will review this decision on the basis of a proposal from the Commission
no later than 31 December 2002 when the authorisation granted by this decision
expires,

HAS ADOPTED THIS DECISION:

Article 1

In accordance with Article 8(4) of Council Directive 92/81/EEC, France is authorised to apply
a differentiated rate of excise duty on diesel fuel used in local public passenger transport
vehicles from 1 January 2001 until 31 December 2002 provided that the differentiated rates
are in accordance with the obligations laid down in Council Directive 92/82/EEC of
19 October 1992 on the approximation of the rates of excise duties on mineral oils4, and in
particular the minimum rates laid down in Article 5 thereof.

This Decision is addressed to France.

Done at Brussels,

Article 2

For the Council
The President

4

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