2008/318/EC: Council Decision of 7 April 2008 authorising Italy to apply, in determined geographical areas, reduced rates of taxation on gas oil and LPG used for heating purposes in accordance with Article 19 of Directive 2003/96/EC
Date: 2008-04-07
Institutions: Council of the European Union
Subjects: Italy, derogation from EU law, diesel fuel, heating, petroleum product, tax relief

19.4.2008

EN

Official Journal of the European Union

L 109/27

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

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 7 April 2008

authorising Italy to apply, in determined geographical areas, reduced rates of taxation on gas oil and
LPG used for heating purposes in accordance with Article 19 of Directive 2003/96/EC

(Only the Italian text is authentic)

(2008/318/EC)

THE COUNCIL OF THE EUROPEAN UNION,

(2)

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
and electricity (1),
and in particular
of
energy products
Article 19(1) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

By Article 18(1) of Directive 2003/96/EC,
read in
conjunction with Annex II to that Directive, Italy was
authorised to apply in certain ‘particularly disadvantaged
areas’ reduced rates of excise duty on domestic fuel and
LPG used for heating. The derogation was applicable
until 31 December 2006.

(1) OJ L 283, 31.10.2003, p. 51. Directive as amended by Directive

2004/75/EC (OJ L 157, 30.4.2004, p. 100).

(3)

(4)

By letter dated 17 October 2006 the Italian authorities
requested authorisation, under Article 19 of Directive
to apply within the same geographical
2003/96/EC,
taxation on gas oil and LPG
areas reduced rates of
used for heating purposes.
Italy wishes to continue,
after 31 December 2006, its national practice followed
under the abovementioned derogation. The present auth-
orisation is requested for the period from 1 January 2007
to 31 December 2012.

Italy has a very diversified territory with variable climate
and geographical conditions.
In 1999 Italy raised the
general level of excise duties as part of a reform of its
tax system. Taking into account the particularities of its
territory, Italy at the same time introduced reduced rates
of taxation for gas oil and LPG with a view to partially
offset excessively high heating costs borne by residents in
certain geographical areas.

The tax differentiation aims at putting the population of
the eligible areas on a more comparable footing with the
rest of the Italian population by means of reducing exces-
sively high heating costs. For the purposes of identifying
Italy has based itself on objective
the eligible areas,
criteria, concerning the climatic conditions of the area
to the natural gas
in question as well as access
network. The latter criterion mirrors
the degree of
choice as between fuels, open to the population of the
area concerned.

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EN

Official Journal of the European Union

19.4.2008

(5)

(6)

(7)

Thus, the tax reduction is applicable in geographical areas
(communes) fulfilling the following alternative criteria: (i)
communes falling within climate zone F as defined in the
Presidential Decree No 412 of 1993 (1),
is
that
communes with more than 3 000 ‘day degrees’;
(ii)
communes falling within zone E as defined in the Presi-
dential Decree No 412 of 1993, that is communes with
2 100 to 3 000 ‘day degrees’ (2); and (iii) Sardinia and
small islands (all Italian islands apart from Sicily). Since
the development of the natural gas network would to an
important extent reduce the additional heating costs and
improve the variety of options
would in particular
between fuels, available to consumers,
the reduction
will no longer apply in communes belonging to the
second and third areas mentioned once the natural gas
network is completed in the commune concerned.

The common feature of the communes in question is the
additional heating costs as compared to the rest of Italy.
For climate zones E and F, the tax reduction equals on
average 11 to 12 % of the price of gas oil and LPG for
heating purposes. The average heating costs are, due to
climate conditions, 90 % higher than the national average
in climate zone E and 170 % higher than the national
average in climate zone F. For the islands, the additional
heating costs, as compared to mainland Italy, are due to
the geographical particularities of the islands, restricted
fuel supply and additional transport costs, and to the
higher fuel prices as a consequence, as compared to
mainland Italy.

The tax reduction remains in all cases below the addi-
tional heating costs borne by the population concerned,
so that there is no overcompensation in the matter. In
particular the Italian authorities have stated that the tax
reduction does not go beyond the extra costs incurred in
zones E and F due to the colder climate. Furthermore, as
far as the islands are concerned,
the authorities have
stated that the tax reduction does not drive the price
of the fuels in question below the price of the same
fuel on the mainland.

(10)

(11)

(12)

does not apply for other forms of business use of the
said products.

The measure has been found not to distort competition
or hinder the operation of the internal market and it is
not considered incompatible with Community policy on
the environment, energy and transport.

authorised, pursuant

should therefore be

to
Italy
Article 19(2) of Directive 2003/96/EC,
to apply a
reduced rate of taxation to gas oil and LPG used for
heating purposes in certain geographical areas charac-
terised by a high level of heating costs, as indicated in
the Annex to this Decision, until 31 December 2012.

It should be ensured that Italy can apply the specific
seamlessly
reduction to which this Decision relates
before
following on from the
1 January 2007, under Article 18 of Directive
2003/96/EC read in conjunction with Annex II thereto.
The authorisation requested should therefore be granted
with effect from 1 January 2007,

situation existing

HAS ADOPTED THIS DECISION:

Article 1

Italy is hereby authorised to apply reduced rates of taxation to
gas oil and LPG used for room heating purposes in certain
geographical areas characterised by a high level of heating
costs, as specified in the Annex.

In order to avoid any overcompensation, the reduction must
not go beyond the additional heating costs incurred in the areas
in question.

(8)

The reduced rate of taxation remains both for gas oil and
LPG higher than the Community minimum levels of
taxation laid down in Directive 2003/96/EC.

The reduced rate shall comply with the requirements of
Directive 2003/96/EC, and in particular the minimum levels
of taxation laid down in Article 9 thereof.

(9)

The measure in question applies only to the heating of
rooms (both for private individuals and businesses). It

Article 2

(1) This decree divides the Italian territory into six climate zones (A to
‘day degrees’ which
F). The classification is based on the unit
represents for the conventional heating period the sum of daily
average temperatures differing from the optimal 20 °C. The higher
the number attributed to a commune, the lower is the average
outside temperature during the heating period.

(2) The remaining climate zones are defined in terms of ‘day degrees’ as
follows: Zone A (below 600), Zone B (above 600, but not exceeding
900), Zone C (above 900, but not exceeding 1 400) and Zone D
(above 1 400, but not exceeding 2 100).

Consumption in communes situated in the areas referred to in
point 2 or point 3 of the Annex hereto shall be eligible only as
long as the commune concerned lacks a natural gas network.

Article 3

This Decision shall
31 December 2012.

apply

from 1 January 2007 until

19.4.2008

EN

Official Journal of the European Union

L 109/29

This Decision is addressed to the Italian Republic.

Article 4

Done at Luxembourg, 7 April 2008.

For the Council
The President
R. ŽERJAV

Geographical areas concerned by the Decision

ANNEX

— communes falling within climate zone F as established by the Presidential Decree of 26 August 1993 No 412,

— communes falling within climate zone E as established by the Presidential Decree of 26 August 1993 No 412,

— communes in Sardinia and in small islands (all Italian islands, except Sicily).