Corrigendum to Council Directive 2004/75/EC of 29 April 2004 amending Directive 2003/96/EC as regards the possibility for Cyprus to apply, in respect of energy products and electricity, temporary exemptions or reductions in the levels of taxation (OJ L 157, 30.4.2004)
Date: 2004-06-02
Institutions: Council of the European Union
Subjects: Cyprus, derogation from EU law, electrical energy, energy-generating product, tax exemption, tax system, transitional period (EU)

2.6.2004

EN

Official Journal of the European Union

L 195/31

Corrigendum to Council Directive 2004/75/EC of 29 April 2004 amending Directive 2003/96/EC as regards
the possibility for Cyprus to apply, in respect of energy products and electricity, temporary exemptions or
reductions in the levels of taxation

(Official Journal of the European Union L 157 of 30 April 2004)

Directive 2004/75/EC should read as follows:

COUNCIL DIRECTIVE 2004/75/EC
of 29 April 2004
amending Directive 2003/96/EC as regards the possibility for Cyprus to apply, in respect of energy
products and electricity, temporary exemptions or reductions in the levels of taxation

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 93 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

(3)

Having regard to the opinion of the European Economic and
Social Committee (2),

Whereas:

comparatively low level of excise duties previously applied,
the ongoing economic transition, their relatively low
income levels and their limited ability to offset that addi-
tional tax burden by reducing other taxes. In particular the
price increases brought about by application of the mini-
mum rates set by Directive 2003/96/EC are likely to have
adverse effect on their citizens and national economies,
creating for instance an unbearable burden for small and
medium-sized enterprises.

Cyprus should therefore be permitted, on a temporary
basis, to apply additional exemptions or reduced levels of
taxation, where it will not be detrimental to the proper
functioning of the internal market and will not result in the
distortion of competition. Moreover, consistent with the
principles in accordance with which transitional periods
were originally granted under Directive 2003/96/EC, any
such measures should be designed to bring about a pro-
gressive alignment with the applicable Community mini-
mum rates.

(1)

Council Directive 2003/96/EC of 27 October 2003
restructuring the Community framework for the taxation
of energy products and electricity (3) replaced, with effect
from 1 January 2004, Council Directive 92/81/EEC of
19 October 1992 on the harmonisation of the structures
of excise duties on mineral oils (4) and Council Directive
92/82/EEC of 19 October 1992 on the approximation of
the rates of excise duties on mineral oils (5). It defines the
fiscal structures and the levels of taxation to be imposed on
energy products and electricity.

(2)

The minimum rates set by Directive 2003/96/EC are liable
to create serious economic and social difficulties for cer-
tain Member States, among which Cyprus, in view of the

(1) Opinion delivered on 20 April 2004 (not yet published in the Offi-

cial Journal).

(2) Opinion delivered on 31 March 2004 (not yet published in the Offi-

cial Journal).

(3) OJ L 283, 31.10.2003, p. 51.
(4) 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).

(5) OJ L 316, 31.10.1992, p. 19. Directive as last amended by Directive

94/74/EC.

(4)

This Directive does not prejudice the outcome of any pro-
cedures relating to distortions of the operation of the single
market that may be undertaken, in particular pursuant to
Articles 87 and 88 of the Treaty. It does not override the
requirement for Member States to notify instances of
to
potential State aid to the Commission pursuant
Article 88 of the Treaty.

(5)

The wording of Article 30 of Directive 2003/96/EC should
be clarified.

(6)

The provisions in this Directive must apply from the date
of accession of the new Member States. The urgency of the
matter justifies an exception to the six-week period pro-
vided for in point I.3 of the Protocol on the role of national
parliaments in the European Union.

(7)

Directive 2003/96/EC should therefore be amended
accordingly,

L 195/32

EN

Official Journal of the European Union

2.6.2004

HAS ADOPTED THIS DIRECTIVE:

2.

In Article 30 the following paragraph is added:

Article 1

‘References to the repealed directives shall be construed as
references to this Directive.’

Directive 2003/96/EC is hereby amended as follows:

Article 2

1. The following Article is inserted:

‘Article 18b

1.
Notwithstanding the periods set out in paragraph 2 and
provided that this does not significantly distort competition,
Member States with difficulties in implementing the new
minimum levels of taxation shall be allowed a transitional
period until 1 January 2007, particularly in order to avoid
jeopardising price stability.

2.
The Republic of Cyprus may apply a transitional period
until 1 January 2008 to adjust its national level of taxation
on gas oil and kerosene used as propellant to the new mini-
mum level of EUR 302 per 1 000 l and until 1 January 2010
to reach EUR 330. However, the level of taxation on gas oil
and kerosene used as propellant shall be not less than EUR
245 per 1 000 l as from 1 May 2004.

The Republic of Cyprus may apply a transitional period until
1 January 2010 to adjust its national level of taxation on
unleaded petrol used as propellant to the new minimum level
of EUR 359 per 1 000 l. However, the level of taxation on
unleaded petrol shall be not less than EUR 287 per 1 000 l
as from 1 May 2004.

3. Within the transitional periods established, Member
States shall progressively reduce their respective gaps with
respect to the new minimum levels of taxation. However,
where the difference between the national level and the mini-
mum level does not exceed 3 % of that minimum level, the
Member State concerned may wait until the end of the period
to adjust its national level.’

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with this
Directive from the date of entry into force of this Directive. They
shall forthwith communicate to the Commission the text of those
measures and a correlation table between those measures and this
Directive.

When Member States adopt these measures, they shall contain a
reference to this Directive or be accompanied by such a reference
on the occasion of their official publication. The methods of mak-
ing such reference shall be laid down by the Member States.

2. Member States shall communicate to the Commission the
text of the main provisions of national law which they adopt in
the field covered by this Directive.

Article 3

This Directive shall enter into force subject to, and as from the
date of, the entry into force of the Treaty of Accession of the
Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary,
Malta, Poland, Slovenia and Slovakia. It shall be transposed by the
Member States into their national law as of the same date. They
shall forthwith inform the Commission thereof.

Article 4

This Directive is addressed to the Member States.

Done at Luxembourg, 29 April 2004.

For the Council
The President
M. McDOWELL