2007/880/EC: Council Decision of 20 December 2007 authorising France to apply a reduced rate of taxation to unleaded petrol used as motor fuel and consumed in the Corsican departments in accordance with Article 19 of Directive 2003/96/EC
Date: 2007-12-20
Institutions: Council of the European Union
Subjects: Corsica, France, assessment of prices, lead-free petrol, tariff reduction, tax system

29.12.2007

EN

Official Journal of the European Union

L 346/15

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 20 December 2007

authorising France to apply a reduced rate of taxation to unleaded petrol used as motor fuel and
consumed in the Corsican departments in accordance with Article 19 of Directive 2003/96/EC

(Only the French text is authentic)

(2007/880/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Directive 2003/96/EC of 27 October
2003 restructuring the Community framework for the taxation
of energy products and electricity (1), and in particular Article
19(1) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

Pursuant to Article 18(1) of Directive 2003/96/EC, read
in conjunction with Annex II to that Directive, France
was authorised to apply a reduced rate of taxation in
respect of consumption in Corsica. The authorisation
was granted until 31 December 2006.

By letter dated 16 October 2006, the French authorities
requested authorisation to apply a reduced rate of energy
tax to unleaded petrol used as motor fuel by way of
extension of a practice followed under
the above-
mentioned derogation, and this before the derogation
expired. The reduction amounts to EUR 1 per hectolitre.
The authorisation is being requested for the period from
1 January 2007 to 31 December 2012. In Corsica the
cost of supplying unleaded petrol to the forecourt is
appreciably higher than in mainland France, final prices
being EUR 4-7/hl higher than on the mainland.

(1) OJ L 283, 31.10.2003, p. 51. Directive as last amended by Directive
2004/75/EC (OJ L 157, 30.4.2004, p. 100). Corrected version
(OJ L 195, 2.6.2004, p. 31).

(3)

(4)

(5)

(6)

(7)

By reducing the tax on unleaded petrol borne by
consumers in Corsica, the consumers in question will
be placed on a more equal footing with those on the
mainland. The measure therefore meets regional and
cohesion policy objectives.

The tax reduction is no larger than what is necessary to
allow for the additional transport and distribution costs
borne by consumers in Corsica.

The final level of taxation complies with the minimum
rates laid down in Directive 2003/96/EC - currently EUR
(or EUR 35,90/hl). This holds true even
359/1 000 l
allowing for
the authorisation conferred by Council
Decision 2005/767/EC (2), the effects of which may be
combined with those of the present Decision.

the remote and insular nature of

In view of
the
departments to which it applies and the moderateness
of the reduction in the rate – which is, moreover, very
high compared with the Community minimum – the
measure requested will not give rise to any movement
specifically linked to the supplying of fuel.

Consequently, the measure is acceptable from the point
of view of the proper functioning of the internal market
and of the need to ensure fair competition and it is not
incompatible with the Community’s health, environment,
energy and transport policies.

(2) OJ L 290, 4.11.2005, p. 25.

L 346/16

EN

Official Journal of the European Union

29.12.2007

(8)

(9)

France should therefore be authorised, pursuant to Article
19(2) of Directive 2003/96/EC, to apply a reduced rate
of taxation to unleaded petrol used as motor fuel and
consumed in Corsica, and this until 31 December 2012.

In order to avoid any over-compensation, the reduction must
not go beyond the additional costs of transport, storage and
distribution compared with mainland France.

for

in the context of the dero-
It should be ensured that,
gation provided
in Article 18 of Directive
2003/96/EC, read in conjunction with Annex II to that
Directive, France can apply the specific reduction to
which this Decision relates
seamlessly following on
from the situation obtaining under the law applicable
before 1 January 2007. The authorisation requested
should therefore be granted with effect from 1 January
2007,

HAS ADOPTED THIS DECISION:

Article 1

France is hereby authorised to apply a reduced rate of taxation
to unleaded petrol used as motor fuel and consumed in the
Corsican departments.

The reduced rate must comply with the obligations in Directive
2003/96/EC,
in particular the minimum rates referred to in
Article 7.

Article 2

This Decision shall be applicable from 1 January 2007 and shall
expire on 31 December 2012.

This Decision is addressed to the French Republic.

Article 3

Done at Brussels, 20 December 2007.

For the Council
The President

F. NUNES CORREIA