CELEX: 51993PC0147
Language: en
Date: 1993-04-05
Title: Proposal for a COUNCIL DECISION authorizing certain Member States to apply or to continue to apply to certain mineral oils when used for specific purposes, reduced rates of excise duty or exemptions from excise duty in accordance with the procedure provided for in Article 8 (4) of Directive 92/81/EEC

COMMISSION OF THE EUBOPEAN COMMUNITIES
                                                          C0M(93) 147 final
                                                          Brussels, 5        April 1993
                                  Proposal for a
                                COUNCIL DECISION
      authorizing certain Member States to apply or to continue to apply to certain
      mineral oils when used for specific purposes, reduced rates of excise duty or
     exemptions from excise duty in accordance with the procedure provided for in
                          Article 8(4) of Directive 92/81/EEC
                       (presented by the Commission)
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
 Article 8(4) of Council Directive 92/81/EEC1 harmonizing the structure of excise duties on mineral
 oils contains a measure enabling the Council, acting unanimously on the basis of a proposal from the
 Commission, to authorize exemptions or reductions in the rates of duty for specific policy
considerations.
The Belgian authorities have made a request in the context of the introduction of an excise on heavy
fuel oil (HFO) for the first time which is to be considered as transitional in nature. Prior to 1 January
 1993, this product was not subject to any duty. It is the intention of the Belgian authorities to set the
tax rate at two levels, the lower one of which is to be applied to HFO with a sulphur content below
 1 %. The average rate of duty charged will respect the minimum rate of 13 ecu per tonne prescribed
in Council Directive 92/82/EEC.2 By 31 December 1995, the rate of duty charged in Belgium on all
categories of HFO will conform to this level
The request from Greece set out in this proposal is concerned with the continuation of long standing
exemptions or reductions which are of limited local application.
The Italian authorities have requested that relief from excise duty be granted to mineral oils used as
fuel in the production of alumina in Sardinia. They consider that such a request is justified by the
heavy energy costs borne by this industry and by the exemption already granted to Ireland in Council
Decision 92/510/EEC.3
As required by the Directive, Member States have been notified of these requests. The Commission
is now making a proposal which will enable the Council to decide if authorisation is to be granted.
Provision is made in the Directive for the Commission to examine and review these reductions or
exemptions from time to time. If it should consider that they are no longer sustainable in terms of
competition or distortion of the operation of the internal market or Community policy in the area of
protection of the environment, it shall submit appropriate proposals to the Council. In any event, the
Commission will make such a report to the Council on all exemptions or reductions before 31
December 1996.
1
   O.J. No. L 316 of 31 October 1992.
2
  idem.
3
  idem.
 ---pagebreak---                                              Proposal for a
                                            Council Decision
           authorizing certain Member States to apply or to continue to apply to certain
            mineral oils when used for specific purposes, reduced rates of excise duty or
          exemptions from excise duty, in accordance with the procedure provided for in
                                  Article 8(4) of Directive 92/81/EEC
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Directive 92/81/EEC of 19 October 1992 on the harmonization of the
structures of excise duties on mineral oils and in particular Article 8(4) thereof;
Having regard to the proposal from the Commission, .
Whereas, pursuant to Article 8 (4) of Directive 92/81/EEC, the Council acting unanimously on a
proposal from the Commission, may authorize any Member State to introduce exemptions or
reductions in the excise duty charged on mineral oils for special policy considerations;
Whereas the Commission has been informed by the Member States concerned of their intention to
continue to apply certain exemptions or reductions which are already provided for in their fiscal law
or to introduce exemptions or reductions and to which the procedure provided for under the said
Article 8 (4) should be applied;
Whereas the other Member States have been informed thereof;
Whereas, it is accepted by the Commission, and by all Member States that all of these exemptions or
reductions are well founded in terms of specific policies and do not give rise to distortions in
competition or interfere with the working of the internal market;
Whereas the reductions or exemptions will be continually reviewed by the Commission to ensure
their compatibility with the operation of the internal market or Community policy in the area of
protection of the environment;
Whereas pursuant to Article 8 (6) of Directive 92/81/EEC, the Council is required to review the
situation at the latest by 31 December 1996 on the basis of a report from the Commission,
HAS ADOPTED THIS DECISION:
                                                Article 1
In accordance with the provisions of Article 8 (4) of Directive 92/81/EEC and notwithstanding the
obligations laid down in Council Directive 92/82/EEC of 19 October 1992 on the approximation of
the rates of excise duty on mineral oils, the following Member States are authorized to apply or to
continue to apply the reductions in rates of excise duties or exemptions from excise duty as herein
specified:
1. in the Kingdom of Belgium:
     until 31 December 1995, for a reduction in the rate of duty on heavy fuel oil to encourage the
     use of more environmentally friendly fuels provided that such an incentive is specifically linked
 ---pagebreak---      to sulphur content and provided that the average rate of duty charged on heavy fuel oil respects
     the minimum rate of duty on heavy fuel oil as provided for in Community law;
2. in the Hellenic Republic:
     to grant relief from the excise duty on mineral oils for fuels intended to be used to power the
     official vehicles of the Department of the Prime Minister, the national police force and the
     metropolitan bishops;
3. in the Italian Republic:
     to grant relief from excise duty on mineral oils used as fuel in the production of alumina in
     Sardinia.
                                              Article 2
This Decision is addressed to the Kingdom of Belgium, the Hellenic Republic and the Italian
Republic.
Done at Brussels,
 ---pagebreak---                                                                       ISSN 0254-1475
                                                               COM(93) 147 final
                                                       DOCUMENTS
EN                                                                               09
                                 Catalogue number : CB-CO-93-171-EN-C
                                                             ISBN 92-77-54501-1
Office for Officiai Publications of the European Communities
[,-2985 Luxembourg