CELEX: 51998PC0793
Language: en
Date: 1998-12-16
Title: Proposal for a Council Decision authorising, in accordance with Directive 92/81/EEC, certain Member States to apply and to continue to apply to certain mineral oils, reduced rates of excise duty or exemptions from excise duty, and amending Decision 97/425/EC

COMMISSION OF THE EUROPEAN COMMUNITIES
                                       Brussels, 16.12.1998
                                       COM(1998) 793 final
                        Proposal for a
                   COUNCIL DECISION
  authorising, in accordance with Directive 92/81/EEC,
certain Member States to apply and to continue to apply
 to certain mineral oils, reduced rates of excise duty or
  exemptions from excise duty, and amending Decision
                        97/425/EC
               (presented by the Commission)
 ---pagebreak---  ---pagebreak---                             EXPLANATORY MEMORANDUM
BACKGROUND
The taxation of mineral oils in the Community is currently governed by Council
Directive 92/81/EEC,1 which specifies products which should be treated as mineral
oils and the uses which make them liable to tax. It also lays down a number of
compulsory exemptions from the normal rules on taxation, as well as some optional
exemptions and reduced rates. In addition, Article 8(4) of the Directive allows the
Council, acting unanimously on a proposal from the Commission, to authorise a
Member State to introduce further exemptions or reductions for specific policy
considerations. At present, ninety such derogations exist.
According to Article 8(6), the Council, at the latest before 31 December 1996, had to
review the derogations granted under Article 8(4) on the basis of a report by the
Commission. This report was duly produced2 and submitted to the Council for
consideration. The Council Decision that was adopted following this review provides
that the derogations provided for in Article 3 should be the subject of another Council
decision providing for the future, to be adopted before 31 December 1998. The
proposal for a Council Decision set out here provides a further 12 month extension for
those derogations. This will give further time to consider the position from a State Aid
point of view.
In addition, the French authorities have informed the Commission that they wish to
apply, as from 1 January 1999, a differentiated diesel rate for commercial vehicles.
In accordance with the Directive, the other Member States have been informed of this
request.
The Directive provides for the Commission to review such exemptions and reductions
periodically. If the Commission considers that they may no longer be applied because
they distort competition or the operation of the internal market or are incompatible
with Community policy on protection of the environment, it is to present appropriate
proposals to the Council. In any event, this derogation must be reviewed no later than
31 December 1999, when the authorisation granted by the Decision expires. The
Council will review the situation on the basis of a Commission proposal and decide
whether the authorisation should be withdrawn, amended or extended.
 1
   Council Directive 92/81/EEC of 19 October 1992, OJ L316, 31.10.1992.
 2
   COM (96) 549.
 3
   Council Decision 97/425/EC of 30 June 1997, OJ L 182, 10.7.1997, p. 22.
 ---pagebreak---                                    COUNCIL DECISION
                                             of
              authorising, in accordance with Directive 92/81/EEC,
            certain Member States to apply and to continue to apply
              to certain mineral oils, reduced rates of excise duty or
              exemptions from excise duty, and amending Decision
                                        97/425/EC
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 oils4, and in particular
Article 8 (4) and (5) thereof,
Having regard to the proposal from the Commission5,
Whereas, pursuant to Article 8 (4) of Directive 92/81/EEC, the Council, acting
unanimously on a proposal from the Commission, authorised Member State to
introduce exemptions or reductions in the excise duty charged on mineral oils for
special policy considerations;
Whereas, pursuant to Article 3 of Council Decision 97/425/EC, the Council is
required to decide before 31 December 1998 on the basis of a Proposal from the
Commission whether those derogations which expire on 31 December 1998 should be
extended for a further specific period;
Whereas the Commission has been informed by Member States of their intention to
continue to apply certain such exemptions or reductions which are already provided
for in their taxation law or to introduce exemptions or reductions;
Whereas, for specific policy considerations, certain exemptions and reductions should
continue to have effect until 31 December 1999; whereas there should be provisions
4
   OJ L316, 31.10.92, p 12, Directive as last amended b '/ Directive 94/74/EC (OJ L365, 31.12.94, p
46).
 5
   OJ
 ---pagebreak---    for an extension beyond the above mentioned dates and whereas the reductions or
  exemptions are regularly reviewed1 by the Commission to ensure that they are
  compatible with the operation of the internal market and other objectives of the
  Treaty.
   HAS ADOPTED THIS DECISION:
  Article I
   By way of derogation from the obligations imposed by Directive 92/82/EEC6, the
   following Member States are authorised to apply or to continue' to apply the
   reductions in rates of excise duties or exemptions from excise duty herein specified
   until 31 December 1999 unless the Council unanimously determines before that date
   on a proposal from the Commission whether any or all of these derogations shall be
   modified or extended for a further specific period:
1. France:
   - for consumption on the island of Corsica, provided that the reduced rates at all times
   respect the minimum rates of duty on mineral oils as provided for under Community
   law,
   - for a differentiated diesel rate for commercial vehicles provided that the rate of duty
   respects the minimum rate provided for under Community law,
   - for an exemption for heavy fuel oil used as fuel for the production of alumina in the
   region of Gardanne.
2. Italy:
   -.for a reduction in excise duty on petrol consumed on the territory of Friuli-Venezia
   Giulia, provided that the rate of duty respects the minimum rate provided for under
   Community law,
    - for a reduction in the rate of duty for mineral oils consumed in the regions of Udine
    and Trieste, provided that the reduced rates at all times respect the minimum rates of
    duty on mineral oils as provided for under Community law,
    - for an exemption from excise duty on mineral oils used as fuel for alumina
    production in Sardinia,
    - for a reduction in the excise duty on fuel oil for the production of steam, and for gas
    oil used in ovens for drying and 'activating' molecular sieves in Reggio Calabria,
      OJ L316, 31.10.92 pi9, Directive as last amended by Directive 94/74/EC (OJ L365,31.12.94, p46).
 ---pagebreak---    provided that the rate of duty respects the minimum rate provided for under
   Community law.
3. The Netherlands:
   - for a differentiated diesel rate for commercial vehicles, provided that the rate of duty
   respects the minimum rate provided for under Community law.
Article 2
This Decision is addressed to the Member States.
Done at
                           For the Council
                          The President
 ---pagebreak---  ---pagebreak---                                                                 ISSN 0254-1475
                                                           COM(98) 793 final
                                             DOCUMENTS
EN                                                           09 02 10 01
                                    Catalogue number : CB-CO-98-799-EN-C
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