WRITTEN QUESTION E-0527/02 by Karin Riis-Jørgensen (ELDR) to the Commission. Reduction in environmental and energy taxes on transport to remote island regions.
Date: 2002-02-25
Institutions: European Parliament, Provisional data
Subjects: Denmark, EU law, State aid, aid system, environmental tax, island region, tax exemption, tax law, transport policy

6.2.2003

EN

Official Journal of the European Union

C 28 E/33

(2003/C 28 E/037)

WRITTEN QUESTION E-0527/02

by Karin Riis-Jørgensen (ELDR) to the Commission

(25 February 2002)

Subject: Reduction in environmental and energy taxes on transport to remote island regions

Conditions in the island regions of Denmark, and in other island regions of the EU located at a distance
from the mainland, are often substantially less favourable than in the rest of the country. As regional aid
does not always provide an answer to the problems of
these peripheral regions, a reduction in
environmental and energy taxes on transport to such regions could be a possible solution.

Can the Commission state whether it is possible to reduce or partially abolish environmental and energy
taxes for remote island regions?

Answer given by Mr Bolkestein on behalf of the Commission

(16 April 2002)

Community legislation currently in force (1) provides for a compulsory exemption from the harmonised
excise duty on mineral oils to be used as fuels for the purposes of air and sea navigation, other than for
private pleasure crafts. This general exemption also covers transport to and from remote island regions.
Concerning environmental taxes, there is no Community legislation or harmonisation for the time being
and, therefore, it is for each Member State to establish and apply its national legislation, providing that this
legislation is in line with the general principles of the EC Treaty.

Community legislation does not contain specific provisions concerning potential reduction or abolition of
energy taxes for remote island regions. Nevertheless, Member States wishing to introduce further
exemptions or reductions for specific policy considerations, can ask for an authorisation to do so in
accordance with the provisions of Article 8(4) of Council Directive 92/81/EEC. This authorisation can be
given following an established procedure and a proposal by the Commission, but it requires an unanimous
agreement at the Council.

The Commission would also like to inform the Honourable Member that any potential exemption or
reduction to environmental and energy taxes, to be based on both Community and/or national law, has to
be in line with EC Treaty provisions on state aid, and not cause any fiscal discrimination (Articles 87, 88
and 90 of the EC Treaty).

With regard to state aid granted on the basis of Article 87 of the EC Treaty to offset in part additional
transport costs borne by firms located in a particular region, the Honourable Member should note that
operating aid (i.e. aid which is not linked to an initial investment) is only authorised when the region is:

(cid:1) a sparsely populated region (in such a case, aid can only be granted under the conditions specified in

point 4.16.1 of the Guidelines on national regional aid (2));

(cid:1) an outermost region in the meaning of Article 299(2) of EC Treaty (under the conditions specified in

points 4.16.1 and 4.16.2 of the Guidelines);

(cid:1) a region eligible to the derogation 87.3.a of EC Treaty (under the conditions specified in points 4.15

of the Guidelines).

None of the remote island regions of Denmark complying with one of these conditions, an eventual
operating aid would have to comply with the ‘de minimis’ rule (Commission Regulation (EC) No 69/
2001of 12 January 2001on the application of Articles 87 and 88 of the EC Treaty to de minimis aid (3)).

(1) Council Directive 92/81/EEC of 19 October 1992 on the harmonization of the structures of excise duties on

mineral oil, OJ L 316, 31.10.1992.

(2) OJ C 74, 10.3.1998 as amended OJ C 258, 9.9.2000.
(3) OJ L 10, 13.1.2001.