CELEX: 51994PC0147
Language: en
Date: 1994-07-01
Title: Amended proposal for a COUNCIL DIRECTIVE on excise duties on motor fuels from agricultural sources

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                                                           C0MC94) 147 final
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                                                Amended proposal for a
                                                COUNCIL DIRECTIVE
                                on excise duties on motor fuels from agricultural sources
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                                                  of the EC-Treaty)
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 ---pagebreak---                            EXPLANATORY MEMORANDUM
INTRODUCTION
On 5 March 1992W the Commission presented a proposal to the Council for a Council
Directive on excise duties on motor fuels from agricultural sources.
The Economic and Social Committee has given its opinion on 26 May 1992(2) which
broadly supported the proposal.
The Opinion of the European Parliament was adopted on 8 February 1994(3) on the
basis of a report prepared by the Committee on Economic and Monetary Affairs and
Industrial Policy. This went along with the Commission's proposal, proposing some
amendments. The Commission largely shares the view of the Parliament and accepts
the amendments Nos 2, 3, 5, 13, 19 and 47, which reinforce and complete the initial
proposal. However, several of the proposals which have been put forward by the
Parliament are linked to the idea of making the proposed tax incentive optional (Nos 6,
20, 21 and 22). This is not acceptable to the Commission, since it would weak the
impact of the proposed measure at a Community level. Amendment No 7 is not
acceptable because it is contrary to the Union's international engagements and
amendment 14 because it is not relevant in a fiscal Directive. Finally, amendment No
 12 is not acceptable because it runs contrary to the Community policy of favouring
renewable resources.
Moreover, whilst not formally amending its proposal, the Commission intends to take
account of the ideas contained in certain other amendments during the negotiations on
the Directive in the Council.
(1) OJ. C 73 of 24 March 1992.
(2) OJ. C223 of 31 August 1992.
(3) O. J. (Not yet published)
 ---pagebreak---                                      Amended Proposal for a
                                     COUNCIL DIRECTIVE
                                        on excise duties on
                               motor fuelsfromagricultural sources
Original proposal                                Amended proposal
THE COUNCIL OF THE EUROPEAN                      THE COUNCIL OF THE EUROPEAN UNION
COMMUNITIES
Having regard to the Treaty establishing the     Having regard to the Treaty establishing the
European Economic Community, and in              European Community, and in particular Article
particular Article 99 thereof,                   99 thereof,
Having regard to the proposal from the
                                                 unchanged
Commission,
Having regard to the opinion of the European
                                                 unchanged
Parliament,
Having regard to the opinion of the Economic
                                                 unchanged
and Social Committee,
Whereas fuels from agricultural sources present
                                                 unchanged
advantages for the Community's policies
concerning both agriculture and energy;
                                                 Whereas fuels from agricultural sources present
                                                 an advantage as flanking measures to the
                                                 Community's agricultural policies notably by
                                                 creating new demand for agricultural products
                                                 and by reducing unemployment;
Whereas, for the purpose of limiting harmful     unchanged
emissions, the development and use of less
polluting fuels should be encouraged;
 ---pagebreak---                                                     Whereas the development of a new economic
                                                    sector in this area calls for close collaboration
                                                    between the parties involved;
Whereas fuels produced from renewable               unchanged
agricultural sources have been identified in
general as beneficial to the environment;
Whereas a financial incentive should be             Whereas a financial incentive should be
provided to encourage the development of these      provided to encourage the development of these
fuels and bring that development to a level of      fuels and bring that development to a level of
sustained viability;                                sustained viability, while ensuring that this has
                                                    no undesirable environmental or socio-
                                                    economic effects;
Whereas the most effective way of providing         unchanged
this incentive is to reduce the rate of excise duty
to be charged,
HAS ADOPTED THIS DIRECTIVE:
 ---pagebreak---                                                 Article 1
 Without prejudice to the provisions on the          unchanged
taxation of motor fuels contained in Council
Directive         on the harmonization of excise
duties on mineral oils and Council Directive
        on the harmonization of the structures of
excise duties on mineral oils, Member States
shall, in accordance with the provisions of this
Directive, charge reduced excise duty on certain
motor fuels produced from agricultural
products.
                                               Article 2
For the purpose of this Directive the products to   unchanged
be taxed at the reduced rate arc:
1. Ethyl alcohol produced from agricultural         unchanged
    products or products of vegetable origin
    (hereinafter described as bioethanol) falling
    within subheading 2207 20 00 10/80 of the
    integrated    tariff   of     the  European
    Communities, which is used directly of
    through a chemical modification.
2. Methyl alcohol (methanol) falling within         unchanged
    CN code 29 05 11 00, and produced from
    agricultural products or products of
   vegetable origin, which is used directly or
    through a chemical modification.
    Vegetable oil falling within CN codes 1507,     unchanged
    1508, 1510, 1511 1512, 1513, 1514 and
    1515.
4. Chemically modified vegetable oil produced       unchanged
   from agricultural products and falling within
   CN code 1518.
 ---pagebreak---                                                 Article 3
 1.       The rate of duty on bioethanol shall be    unchanged
not more than 10% of that charged on unleaded
petrol within a Member State.
2.        The rate of duty on methanol as            unchanged
referred to in article 2 paragraph 2 shall be not
more than 10% of that charged on unleaded
petrol within a Member State.
3.        The rate of duty on vegetable oils,        unchanged
whether chemically modified or not, shall be not
more than 10% of that charged on diesel within
a Member State.
                                                    4.        Ten years after the entry into force of
                                                    this directive, the rates mentioned in paragraphs
                                                     1, 2 and 3 of Article 3 will be changed to 20%.
                                                    Five years later, they will be changed to 30%
                                                    and so on every five years until reaching 50%.
                                                    5.        The codes of good agricultural practice
                                                    established in accordance with Article 4 of
                                                    Council Directive 91/676/EEC of 12 December
                                                     1991 concerning the protection of waters
                                                    against pollution caused by nitrates from
                                                    agricultural sources should be respected while
                                                    granting the tax incentive provided for in this
                                                    Article.
                                                Article 4
Member States shall take all necessary measures     unchanged
to control the manufacture, storage, mixing and
distribution of these products and in particular
shall ensure that all operations conform to the
general regime for the control of excisable
products as set out in Council Directive
                                                Article 5
For the first time not later than 31 December       unchanged
1997 and thereafter every two years, the
Commission shall report to the Council on the
fiscal, economic, agricultural, energy, industrial
and environmental aspects of this measure.
 ---pagebreak---                                                Article 6
Member States shall bring into force the laws,     Member States shall bring into force the laws,
regulations and administrative provisions          regulations and amdinistrative provisions
necessary to comply with this Directive not later  necessary to comply with this Directive not later
than 1 January 1993.                               than 1 January 1995.
When the Member States adopt such provisions unchanged.
they shall contain a reference to this Directive
or shall be accompanied by such a reference on
official publication. The Member State shall lay
down the manner in which such reference shall
be made.
                                               Article 7
This Directive is addressed to the Member          unchanged
States.
Done at                                                                        For the Council
 ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(94) 147 final
                                                      DOCUMENTS
EN                                                                     03 12 09
                                 Catalogue number : CB-CO-94-154-EN-C
                                                             ISBN 92-77-67693-0
Office for Official Publications of the European Communities
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