Proposal for a Council Decision authorising the Netherlands to apply a differentiated rate of excise duty to low-sulphur petrol in accordance with Article 8(4) of Directive 92/81/EEC
Date: 2001-11-08
Institutions: European Commission
Subjects: Netherlands, competition law, derogation from EU law, excise duty, petrol

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 08.11.2001
COM(2001) 642 final

Proposal for a

COUNCIL DECISION

authorising the Netherlands to apply a differentiated rate of excise duty to low-sulphur
petrol in accordance with Article 8(4) of Directive 92/81/EEC

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

SUBMISSION OF REQUEST

In a letter dated 24 July 2001, supplemented by a letter dated 23 August 2001,
the
Netherlands informed the Commission that it wanted to introduce a differentiated rate of
excise duty on petrol with a sulphur content not exceeding 50 particles per million (ppm)
under Article 8(4) of Council Directive 92/81/EEC on the harmonisation of the structures of
excise duties on mineral oils.1

The term “low-sulphur petrol” refers to petrol with a sulphur content meeting the 50 ppm
environmental criterion laid down in Directive 98/70/EC of the European Parliament and of
the Council of 13 October 1998 relating to the quality of petrol and diesel fuels.2

The Netherlands explains that the purpose of the proposed reduction is to encourage the use
of this environmentally-friendly fuel.

It therefore wishes to reduce excise duties by NLG 0.03 (
containing less than 50 ppm sulphur. The annual cost
€

0.0136) per litre for petrols
is estimated at

to the budget

75 million.

€

The measure will enter into force on 1 October 2002 and expire on 1 January 2005.

The Netherlands does not consider this measure to constitute state aid, since it applies to all
consumers, regardless of economic sector.

2.

THE COMMISSION’S ASSESSMENT

Under Article 8(4) of Council Directive 92/81/EEC on the harmonisation of the structures of
excise duties on mineral oils, 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.

By letters dated 24 July 2001 and 23 August 2001, the Netherlands requested authorisation to
apply a differentiated rate of excise duty to low-sulphur (50 ppm) petrol from 1 October 2002.

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

1

2

OJ L 316, 31.10.1992, p. 12, Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.94,
p. 46).
OJ L 350, 28.12.1998, p. 58, Directive amending Council Directive 93/12/EEC (OJ L 74, 27.3.1993,
p. 81).

2

Following the implementation of the planned measure,
charged on petrol used as fuel in the Netherlands will be as follows:

the differentiated excise duties

€

(in

per 1000 l)

Community minimum

Excise
(in 2001)

duty

on

normal

petrols

Excise duty on 50 ppm fuels

Leaded petrol

Unleaded petrol

337

€

NLG 1452
658.8

€

NLG 1422
645.2

287

€

NLG 1301
590.4

€

NLG 1271
576.8

The differentiated rates of excise duties will thus comply with the minimum Community rates
laid down in Articles 3 and 4 of Directive 92/82/EEC.3

Following a thorough study of the measure and acknowledging the importance of tax
incentives to promote cleaner fuels, the Commission notes that the reduction of excise will be
of general application, in other words the reduced rate will be available to anyone filling up
with low-sulphur petrol in the Netherlands. The availability of sufficient quantities of these
fuels, of a satisfactory quality, has been verified.

The derogation is sought on environmental grounds - the benefits in terms of air quality are
known.

This reduction is for a fixed period. The measure should expire on 31 December 2004, the day
before use of this type of fuel becomes mandatory under Directive 98/70/EC of the European
Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel
fuels.

The Commission notes that on 12 March 2001 the Council allowed the Netherlands to apply a
reduced rate of excise duty on 50 ppm diesel fuel.4 The Council has also authorised
derogations under Article 8(4) of Directive 92/81/EEC for 50 ppm fuels in Germany5 and in
Belgium.6

3

4

5

6

OJ L 316, 31.10.1992, p. 19, Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.94,
p. 46).
Council Decision 2001/229/EC of 12.3.2001 (OJ L 84 of 23.3.2001).
Decision 2000/283/EC of 10.4.2000 authorises Germany to apply a differentiated rate of excise duty
from 1 November 2001 to 31 December 2002 on fuels with a maximum sulphur content of 50 ppm on
condition that
it complies with the requirements laid down in Council Directive 92/82/EEC of
19 October 1992 on the approximation of the rates of excise duties on mineral oils, and in particular the
minimum rates laid down in Articles 4 and 5 thereof.
Council Decision 2001/439/EC of 05.06.01 (OJ L 155 of 12.06.01).

3

3.

DECISION

In accordance with Article 8(4) of Council Directive 92/81/EEC, the Commission proposes
that the Council authorise the Netherlands to apply a differentiated rate of excise duty of a
0.0136) per litre to low-sulphur (50 ppm) petrol used as fuel from
maximum of NLG 0.03 (
1 October 2002 until 31 December 2004.

€

4

Proposal for a

COUNCIL DECISION

authorising the Netherlands to apply a differentiated rate of excise duty to low-sulphur
petrol in accordance with Article 8(4) of Directive 92/81/EEC

(only the Dutch version is authentic)

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 oils,7 and in particular Article 8(4) thereof,

Having regard to the proposal from the Commission,8

Whereas:

(1)

(2)

(3)

(4)

(5)

7

8

9

10

The Netherlands has requested authorisation to apply a differentiated rate of excise
duty to low-sulphur (50 ppm) petrol from 1 October 2002.

The other Member States have been informed of this request by the Netherlands
authorities.

The differentiation of excise duty proposed by the Netherlands authorities, worth
€
0.0136 per litre, must be available to all users of low-sulphur petrol. This measure
complies with the minimum rates of excise duty referred to in Articles 3 and 4 of
Council Directive 92/82/EEC of 19 October 1992 on the harmonisation of the
structures of excise duties on mineral oils.9

The derogation is sought on environmental grounds - the benefits in terms of air
quality are known.

Low-sulphur petrol complies with the environmental criterion (50 ppm) laid down in
Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998
relating to the quality of petrol and diesel fuels and amending Council Directive
93/12/EEC.10 Under Article 3 of that Directive, the use of 50 ppm diesel will normally

OJ L 316, 31.10.1992, p. 12, Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.94,
p. 46).
OJ L [...], [...], p. [...].
OJ L 316, 31.10.1992, p. 19, Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.94,
p. 46).
OJ L 350, 28.12.1998, p. 58, amended by Commission Directive 2000/71/EC (OJ L 287, 14.11.2000,
p. 46).

5

be compulsory from 1 January 2005. The derogation should therefore expire on
31 December 2004, subject to the application of Article 8(5) of Directive 92/81/EEC.

On the information available at present, neither the Commission nor the Member
States consider that the application of a differentiated rate of excise duty on low-
sulphur fuel will cause distortions of competition affecting the common interest or
hinder the operation of the single market.

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

(6)

(7)

HAS ADOPTED THIS DECISION:

The Netherlands is authorised to apply a differentiated rate of excise duty to low-sulphur
(50 ppm) petrol from 1 October 2002 to 31 December 2004.

Article 1

The reduction in excise duty, not exceeding
0.0136 per litre of fuel, must comply with the
terms of Council Directive 92/82/EEC, and in particular the minimum rates laid down in
Articles 3 and 4 thereof.

Article 2
€

This authorisation shall expire on 31 December 2004.

Article 3

Article 4

This Decision is addressed to the Netherlands.

Done at Brussels,

For the Council
The President

6