CELEX: 51989PC0526
Language: en
Date: 1989-12-19
Title: AMENDED PROPOSAL FOR A COUNCIL DIRECTIVE ON THE APPROXIMATION OF THE RATES OF EXCISE DUTY ON MINERAL OILS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                              C0MC89) 526 final
                                              Brussels, 19 December 1989
                       Amended proposal for a
                          COUNCIL DIRECTIVE
  on the approximation of the rates of exciseduty on mineral oils
                   (presented by the Commission)
 ---pagebreak---                           EX P LANATORY MEM0 R A N D UM
T•   INTRODUCTION
     1. This proposal           sets out   to amend      the terms of the
        Commission's          initiative of August 198 7 in respect
        of     the rates        of excise duty on mineral oily. Tn
        June      of     this year,      the Communication         from   the
        Commission         to    the Council      and    to   the European
        Parliament         on the completion of the internal market
        and         the      approximation        of     indirect:      taxes
         ( C 0 M ( G 9 ) 2 6 0) set down the general tenor of changes
        in     this field. A minimum rate or a band of rates is
        set       out     for     each   category      of    product      for
        implementation           in each Member State by 31 December
        1992.        Corresponding target rates are laid down for
        these products.             The target     rates    represent     the
        long      term objectives        towards which      Member     States
        must conVG ry i* .
II. BACKGROUND
    2. The initial approach of the Commission, as outlined
        in C0M(07) 3 27 was set against a background where
        all     Member States        levy excises on mineral            oils.
        Uithout exception these             taxes are specific - i.e.,
        rates      are set       in fixed monetary values for a given
        physical        quantity of the product.          Individual rates
        are       prescribed       for   each of      the. major     product
        categories:           petrol. (leaded        or unleaded),       road
        diesel, heating gas oil, heavy                 fuel oil, kerosene
        and     liquid petroleum gas. In general, these various
        rates      of taxation       as set within each Member State,
        do not conform            to any   overall approach but rather
        tend       to be         determined    by     diverse     historical
        patterns        of development/i     In addition       a high level
        of diversity is found in the rates charged across
        the Community on            individual categories        of mineral
        oils      - although this is less pronounced in the case
        of      mineral       oils than     for other       categories     cf
        exciseable products.            % •
    3. Given this scenario, the path              taken was essentially
        a pragmatic one. Based              on    the accepted       product
        categories         and on the rates        of taxation      then   in
        Corci? (in practice. those of              I April     1 9117) in 1.1: e
        Member       States the Commission         put    forward a set of
        average       rates      for adoption      as Community       target
        rates by 31 December 1992.
 ---pagebreak---          This proposal was discussed (together with the rest
         of    the fiscal      package) both within the Council «ind
         Parliament.       It emerged     that for many Member States
         a rapid transition          from their    existing    rates of
         taxation      to the target rates advocated           present:ed
         considerable       practical difficulties       - not least of
         which was a potentially serious drop in revenue for
         certain       Member    States.       In response      to this
         situation, the Commission indicated in June of this
         year      that    it was considering        a more     flexible
         approach to the approximation of tax rates.
III. FLEXIBILITY AND        THE ABOLITION     OF FISCAL    FRONTIERS IN
     1992
     4. Any     fresh     proposal      aimed    at     easing    these
        difficulties        must be formulated within the terms of
         the     Single     European    Act. For mineral        oils in
        practice       this means that the rates and regime to be
        adopted      must be in conformity with the abolition of
         fiscal     controls at       intracommunity     frontiers. In
        addition       the approach     taken has     to reflect      the
        particular realities of trade in these products and
        the      pattern     of    their consumption        within    the
        -Community. The competitive implications of varying
        tax rates on those mineral oils which - constitute an
         important      industrial and commercial cost input form
        another vital constraint            on the    limits of such
        flex ibi 1 ity.
     5. The approach        of the Commission       is therefore      to
        distinguish         between    those    products which        are
        essentially       destined for final private consumption
         (and where the risk of distortion is limited) and
        those whose consumption            is mainly    commercial (and
        with        obvious      implications       for     competitive
        distortion).        The result     is that petrol (leaded and
        unleaded) can be treated              in an approach       which
        differs      from that accorded to diesel and heavy fuel
        oil      - heating        gas oil being       somewhat    of an
        exception       since although      its consumption is mainly
        private,        the pattern        of   supply     dictates      a
        particular approach.
     6. Account must        also be taken of      the various     other
        policy      considerations which impinge on the question
        of setting tax          levels. For mineral o i 1 s the impact of
        national policies in the field of energy and transport
        as well as environment, is reflected in the diversity of existing
        rates. The Commission has taken particular account of the environ-
        mental impact of its proposed rates» whitst always taking into
        account the policies in the field of energy and environment.
 ---pagebreak--- IV. NATURE OF FLEXIBILITY
     7. From the above (essential requirements in the energy,
        transport     and     environment     fields)     and    from    the
        considerations set out in the communication to Parliament
        and Council (C0M(89)260), it is clear that flexibility in
        the form of minimum rates or ranges according to product
         is justified.
     8. In practice, this flexibility will be applied as follows:
        8.1. On 1st      January    1993,    an    initial    move   towards
               approximation of rates will take place: each Member
               State must apply rates equal to or above the minimum
               rates fixed for petrol (leaded or unleaded),             LPG,
               methane and kerosine used as engine fuels, and rate
               within a range fixed for diesel,            heating oil and
               heavy fuel.
        8.2. After this    date this initial flexibility will entail
               a gradual  alignment of rates on benchmark values that
               will be    known as target rates,          with a view to
               attaining  the objectives of the internal market.
               At Community level, these rates will also have to be
               set at a level compatible with the requirements of
               transport, energy and environment policy.
               It is important not to anticipate the results of the
               studies in process nor to prejudge the orientations
               which the Commission will propose in this field.
               This is why the level of the target-rates is not set
               up in this directive.         The Commission will make a
               proposal to the Council before the 31 december 1990.
        8.3. In order to make it easier for Member States to adapt
               their   rates    and   with    a   view   to    reducing   the
               distortions    of    competition    associated     with   the
               continued existnce of different rates,           only those
               adjustments conductive to convergence on the target
               rates will be authorised.
        8.4. Every two years,       the level of the different rates
               (minimum rates,      ranges and target rates) will be
               subject to examination by the Council, on the basis
              of a report by the Commission.             The Council will
               decide on the basis of a proposal by the Commission
              on eventual amendments to these rates taking account
               in particular of the evolution of Community policy in
              different fields (transport, energy, environment).
               Independently of this adaptation, every two years the
               Council on the basis of a proposal by the Commission,
               shall adjust the different rates in order to maintain
               their real value.
 ---pagebreak--- PARTICULAR CONSTDFRATION FOR EACH PRODUCT
 A. PREMIUM    (LEADED) PETROL
    9. Taxes on petrol              account     for almost        4 0% of
        revenue     from excises within             the     Community
        making     it the single most            important such tax.
        Accordingly,          for the        higher      taxing     Member
        States     (who face material revenue                losses as a
        consequence           of      rate      approximation)         any
        flexibility       which might          ease    the burden       of
        adjustment becomes critical.
    10. Petrol      is      essentially         an     item      of    end
          consumption       being      purchased     excise      and   VAT
         paid    by final        consumers in relatively             small
         quantities          (i.e., the standard             tank of a
         private       c a r ) . Existing        safety      regulations
         effectively          limit movements            in    commercial
         quantities to recognized operators.
         At    this level        of trade, controls           on cross-
         border     purchases         are virtually         non-existant
         and    it can be assumed that Member States find
         whatever      trade diversion          results to be within
         acceptable limits.
     1 l . However, the         rem oval of all bord er cont rols
           could     serv e to encou rage movem ent of                  the
           product    on a f r      audulen  t  sea le    if  sub stan tial
           price d iffe rence s persi st a fter 1 992. Pre - tax
           prices     for pet roi cu rrent ly va ry some what
           between    Mem ber S tates, even those ad jacen t to
           one ano ther . An exami nat ion of the ove rail
           structur e o f prices sh ows that                 the f actors
           which g ive rise to diff erenc es in f ina 1 pr ices
           are not all          tax - induce d. If     it    is acce P ted
           that ma rket fore es wi 11 tend                to dr ive out
           those e leme nts o f the price diff eren ce w h ich
           do not refl ect real co st d iffere nces , it i s
           essent ia 1      that     tax     rates even tual ly move
           closer t oget her.
     12. The 1987 proposal advocated                 a rate of 340 ECU
           per   1000 litres based on the simple arithmetic
           average     of existing         rates. (The rate weighted
           for consumption was 337 ECU).
     13. In the      mpantime T       it is proposed to introduce__a
           minimum rate of 337 ECU.
     14. This will        involve no immediate change in rates
           for the majority of Member States whilst those
           where    the rates are below             the minimum        laid
           down will be obliged to move upwards                      by 31
           December 1992.
 ---pagebreak--- B. UNLEADED PETROL
   15. Any historical data on the market-share of lead
         free petrol rapidly becomes out-of-date but in
        those Member States where its promotion                          has
        been    strongest, this is now approaching 5 0% of
        total    consumption.            It is however clear that
         the rate of conversion from                  leaded petrol is
        heavily      dependent on favourable tax treatment
         to      offset          the       additional            refining,
        distributional           and promotional            costs which
        might    otherwise be reflected                 in the       retail
        selling price.
   16. The production          and distribution            of relatively
        small    quantities of unleaded petrol certainly
         imposed     additional fixed and marginal costs on
        commercial       operators.          The initial motivation
        for a preferential             tax rate was to compensate
        for such extra           costs and        thus to obviate the
        need    for higher         prices.        In addition,          some
        positive       incentive was required to make                    the
         conversion attractive to consumers.
   17. Rather than proposing a rate for                        lead    free
        petrol       per-se, the approach                taken by        the
        Commission         in    1987 was         to put       forward a
        differential         (then set at 30 ECU) in favour of
        the environment-friendly product. This figure
        was based on the average differential in the 4
         (currently      7) Member States who had                   adopted
        such an approach.
   1 0 . It is now proposed to increase this differential to SO Frn -
        not on the basis of the current                       average but
        rather     to reflect the level of incentive found
        to be needed          in those Member States where the
        introduction        of unleaded         petrol has been most
        successful .and to accelerate the environmental argument
        in its favour.
   19. There are        good grounds for asserting                  that as
        market-share        (and sales volume) of unleaded
        petrol     increase, the          impact of these             extra
        costs on unit prices decrease.                     This decrease
        should       become      particularly;          significant       as
        unleaded      becomes the dominant product                    type.
        It would follow           that the provisions laid down
        for the periodic            review of rates should take
        account     of the matter of reconsidering the tax
        differential           as      the        incremental         costs
        diminish.
   20. The effect        of this proposal will be to oblige
        those Member States whose excise rates do not
        currently        encourage         the       introduction         of
        unleaded      petrol to. amend their policy in this
        area.       In addition, most                of those        Member
        States who at present give a tax                         break    to
        unleaded      petrol would         face some        increase      in
        the differential.
 ---pagebreak--- C. DIESEL
   21  Consumption     of     diesel    fuel     is mainly      by
       industrial    and commercial       users.      Individual
       purchases    - at    "retail"     level    by   the end
       consumer    - can be relatively         substantial. In
       the absence of border controls             and given the
       relatively      large    fuel     tank     capacity      of
       commerc ial     vehicles,     it    is difficult         to
       envisage     any effective         way     to     restrain
       operators    from purchasing        where     prices    are
       most attractive
   22  Although    fuel      is by      no means       the most
       substantial     component in road transport costs,
       price   sensitivity is sufficiently important to
       ensure    that where     convenient     these     vehicles
       will   transit     through a Member         State    where
       diesel   prices are unattractive and tank-up at
       a cheaper location. This must              certainly     be
       considered      unless     existing     tax rates       are
       brought      closer      together.      The      resultant
       disruption    and distortion       in commercial       road
       transport    would     be highly      inimical     to the
       realisation of the internal market.
   23. A harmonized     rate of 177 ECU per 1000 litres
       was proposed in        198 7 (based    on the weighted
       arithmetic    average).      For the reasons outlined
       above    it   is     essential     that    the ultimate
       objective    of a single rate be retained.               To
       ease the burden        of adjustment somewhat, it is
       now proposed to set a rate-band ranging from
       195   to 2J8S ECU per       1000   litres. This will
       serve   to reduce      substantially the       importance
       of varying tax rates in price differences and
       an important first         step in the direction of a
       target rate.
   24. Apart from    the matter of changes in the excise
       rate   for diesel      per se, most Member          States
       will    have     to     consider      the     impact     of
       approximation       on the       relative     tax burden
       between    petrol and diesel.          For the private
       motorist,     diesel     has     a definite       role   in
       substituting     for petrol      as a motor fuel.        In
       the    Member    States      where    the   differential
       between    the excises on petrol and diesel most
       favours     the    latter,     there    are     generally
       compensatory        measures       to      offset       the
       attractiveness of lower diesel costs - usually
       taking   the form      of an   increased annual        road
       tax on diesel       cars.     There is no reason why
       this approach should         not continue and be used
       by other Member        States who fear the effect on
       revenue of a decrease in the price of diesel.
 ---pagebreak---                                                                  &
D. HEATING GAS OIL
   25. The tax     incidence in the selling price plays a
        critical     role in the competitive        equilibrium
        between    heating gas oil       and   other   fuels
        particularly       natural   gas.       Although     the
        proposed     rate will   upset the current position
        in certain Member       States, there are       already
        differences     in pre-tax    prices which are        in
        some    instances greater than the differences in
        tax rates.
   26. 50 ECU     per 1000 litres was proposed in 1987
         (based   on the weighted       arithmetic    average).
        The nature       of the product       and   its supply
        pattern    militate in favour of a single rate.
        As for other mineral          oils,    there   is some
        measure      of    general    acceptance      for    the
        principle     of seeking closely aligned rates for
        heating    gas oil. A rate band from 47 to 5 3. ECU__
        Rer   1000 litres wi L L provide a measure of flexibility
        wich would still be compatible with.this objective.
   HEAVY FUEL OIL
   27. The pattern      of supply    of heavy     fuel oil    is
        quite    close to heating gas oil          except   that
        consumption     is almost    entirely industrial      or
        commercial.     It would     follow    therefore    that
        both      on    grounds      of    practicality      and
        competitive     balance rates should be as closely
        aligned as is possible.
   28. In 198 7 a harmonized rate of 17 ECU per tonne
        was proposed (based on the weighted arithmetic
        average).     The principle of a taTget rate has
        since    then found    some measure     of acceptance.
       .It should however       be noted that when compared
        with other categories' of mineral oils the tax
        incidence     in the final price        is   relatively
        low.
   2 9. It is now proposed        to establish a narrow band
        of rates from 16 to 18 ECU per tonne
 ---pagebreak--- GASES     -    LIQ"TD         PETROLEUM        GAS AND MEjrjjAJLE.
30   For         LPG          used      for         automotive       purposes               a
     harmonized                 r a t e of     8 5 ECU       per     1000           litres
     (based            on t h e w e i g h t e d a r i t h m e t i c a v e r a g e ) was
     proposed               in 1987.         I t was       also proposed              that
     the          (limited)             use       of    methane      for         similar
     p u r p o s e s be t a x e d a t t h e same r a t e .
3 1. Uhen u s e d              as a     motor f u e l ,       the       relationship
     between              the tax         c h a r g e d on    LPG a n d        that        on
     petrol                is        critical.          Accordingly              it         is
     appropriate                     that     the       approach            taken          be
     similar.                It is      therefore proposed                  t o fix
      a minimum r a t e o t 8 4 . 5 ECU p e r 1000 l i t r e s . Those Member
      S t a t e s t a x i n g LPG a t a h i g h e r r a t e may c o n t i n u e f o r t h e
     moment t o r e t a i n t h e i r r a t e s .
KEROSENE
3 2. The effect                  of the       19 8 7 proposal           was to treat.
     kerosene               according to              its use. Uhen used as a
     propellant,                   the charge          was as      for petrol and
     when         consumed as               fuel for        other purposes the
     appropriate rate was that for heating gas oil.
33.  A similar                approach        is      adopted    in this revised
     proposal.
 ---pagebreak--- COMPARISON OF EXCISE RATES/1000 Lt
                          LEADED PETROL
     ECU
               Minimum rate proposed 337 ECU
600
                                                                     0
       BE     DK    DE    FR     EL     IE    IT   LU    NL GB ES PT
                               • • 1987      MM 1989
 1. Part of the change in rates arises from ecu movements.
 2. Certain rates are average or representative.
 ---pagebreak--- COMPARISON OF EXCISE RATES/1000 Lt
                       UNLEADED PETROL
     ECU
600
                                                                          i
                                                                           !
              DK    DE    FR     EL     IE    IT   LU    NL iB   PI
                                                                 *    * *
                               • •  1987     WÈk 19b9
              Minimum rate proposed 287 EC1- r                 *   j,   *
 1. Part of the change in rates arises from ecu movements.
 2. Certain rates are average or representative.
 ---pagebreak--- COMPARISON OF EXCISE RATES/1000 Lt
                              ROAD DIESEL
     ECU
                                                           \
                               • • 1987      E H 1989
                   Rate band 195-205 ECU
 1. Part of the change in rates arises from ecu movements.
 2. Certain rates are average or representative.
 ---pagebreak---    COMPARISON OF EXCISE RATES/1000 Lt
                                  HEATING GAS OIL
            ECU
   250
   200 h
   150
   100h
                BE     DK    DE    FR     EL    IE   IT    LU NL GB
                                                                     *  * ,
                                             1987        1989
                              Rate band 47-53 ECU                   * * *
1. Part of the change in rates a r i s e s from ecu movements
2. C e r t a i n rates are average or representative
3. In Denmark the tax is repaid to commercial users
 ---pagebreak---   COMPARISON OF EXCISE RATES/TONNE
                            HEAVY FUEL OIL
      ECU
                         Rate band 16-18 ECU
 300
                                                                        i
                                                                       -V
                                                                       i
                                                         MM ••#!
                                         IE    IT   LU   NL GB   ES PT
                                ^1987             1989
1. Part of the change in rates arises from ecu movements
2. Certain rates are average or representative
3. In Denmark the tax is repaid to commercial users
 ---pagebreak--- COMPARISON OF EXCISE RATÇS PER 1000 L,
OF AUTOMOTIVE IM.   : H4ft?-1969
 ---pagebreak---                                                            Amended proposal for a
          C0MC87) 327 final                                  COUNCIL DIRECTIVE
                                               on the approximation of the rates of excise duty
                                                          on mineral oiIs
          ORIGINAL TEXT                                                                  AMENDED PROPOSAL
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                                 THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic           unchanged
Community, and in particular Article 99 thereof,
Having regard to the proposal from the Commission,                       unchanged
Having regard to the opinion of the European Parliament,                 unchanged
Having regard to the opinion of the Economic and Social Committee,       unchanged
Whereas Council Directive ... lays down provisions relating to           unchanged
the structures of excise duty applicable to mineral oils;
rfhereas for the purpose of establishing an internal market              Whereas , in order to set in train a process of convergence, it
without frontiers it is necessary to apply common rates of excise        is necessary to fix target rates of excise duty for each of these
Juty to each of these products ;                                         products ;
                                                                         Whereas these target rates take account of the Community policies
                                                                         on energy, the environment and transport ;
                                                                         Whereas,   so as not to prejudge the guidelines which the
                                                                         Commission will propose in those areas, the setting of the levels
                                                                         of the target rates will be the subject of a Commission proposal
                                                                         between now and 31 December 1990
 'hereas, it is necessary to provide for the periodic adjustment         Whereas it is necessary to provide for the periodic adjustment of
 f those common rates ;
                                                                         those target rates ;
 Whereas the excise rate on mineral oils should be charged at a           unchanged
 specific rate by reference to a given quantity of the products.
                                                                        Whereas these target rates cannot be applied immediately because
                                                                        of the diverse situations in Member States ; whereas, therefore,
                                                                        flexibility of rates should be introduced in the form of minimum
                                                                        rates or rate bands in order to achieve a frontier-free internal
                                                                        market by 1 January 1993 ;                     f
 ---pagebreak---                                                                       - 2-
                                                                           Whereas this Directive lays down minimum rates, target rates and
                                                                           rate bands ; whereas these should be adjusted in line with price
                                                                           movements and whereas such decisions should be taken by the
                                                                           Council under a less burdensome procedure,
                                                                           HAS ADOPTED THIS DIRECTIVE
HAS ADOPTED THIS DIRECTIVE :
                                                                                                               Article 1
                                  Article 1
                                                                           Member States s h a l l apply target rates of excise duty on m i n e r a l
Not later than 31 December 1992 Member States shall apply common           o i l s in accordance with t h i s D i r e c t i v e .         The l e v e l s of those
rates of excise duty on mineral oils in accordance with this               rates shall be the subject of a Commission proposal for a
Directive.                                                                 Directive between now and 31 December 1990.
                                                                                                                A r t i c l e 1a
                                                                            Not later than 1 January 1993, Member States s h a l l apply r a t e s
                                                                            which, in accordance with t h i s D i r e c t i v e , w i l l not be less than
                                                                            the minimum rates o r ,             where appropriate,         will, f a l l w i t h i n the
                                                                            prescribed bands.
                                                                                                                Article 2
                                   Article 2
                                                                            unchanged
The mineral o i l s covered by this Directive are those defined in
Directive . . .
                                                                                                                Article 3
                                   Article 3
                                                                            1 . Every two y e a r s ,        and f o r the f i r s t time not l a t e r than 31
                                                                                  December 1994, the C o u n c i l , a c t i n g on the b a s i s of a r e p o r t
The common rates of excise duty l a i d down in this Directive s h a l l          and, where a p p r o p r i a t e , a proposal from t h e Commission, s h a l l
° e adjusted p e r i o d i c a l l y in accordance with provisions to be          examine the target rates of duty,                 the minimum rates and the
established before 1 January 1989 in Directives adopted by the                    rate bands laid down herein and s h a l l ,               acting unanimously,
Council acting on proposals from the Commission.                                  take such measures as are necessary.
                                                                            2. In any event,              every two years,        and f o r the f i r s t time not
                                                                                  later than 31 December 1994,                   the C o u n c i l ,    acting by a
                                                                                  q u a l i f i e d majority on a proposal from t h e Commission and a f t e r
                                                                                  consult ing the European Parliament, shall take such measures as are
                                                                                  necessary to m a i n t a i n the r e a l value of t h e t a r g e t r a t e s of
                                                                                  d u t y , the minimum r a t e s and the r a t e bands l a i d down h e r e i n .
 ---pagebreak---                                                                           - 3 -
                             Article 4                                                                       Article 4
The common rate of excise duty on leaded petrol shall be 340 ECU                As from 1 January 1993, the minimum rate of excise duty on leaded
per 1000 litres.          The common rate of excise duty on unleaded            petrol shall be fixed at 337 ECU per 1000 litres.
petrol shall be 310 ECU per 1000 litres.
                                                                                                             Article 4a
                                                                                As from 1 January 1993,          the rate of e x c i s e duty on unleaded
                                                                                petrol shall be 50 ECUs lower than the rate applicable to leaded
                                                                                petrol.
                                Article 5                                                                    Article 5
  The Common r a t e     of excise duty on diesel shall be 177 ECU         per  As from 1 January 1993, the rate of excise duty on diesel shall
  1000 l i t r e s .                                                            be not less than 195 ECU or more than 205 ECU per 1000 l i t r e s .
                                Article 6                                                                    Article 6
  The common r a t e of excise duty on heating gas o i l s h a l l be 50 ECU    As from 1 January 1993, the rate of excise duty on heating gas
  per 1000 l i t r e s .                                                        o i l s h a l l not be less than 47 ECU or more than 53 ECU p e r IQOO
                                                                                litres.
                                Article 7
                                                                                                             Article 7
  The common rate of excise duty on heavy fuel oil shall be 17 ECU
  per 1000 kg.                                                                  As from 1 January 1993, the rate of excise duty on heavy fuel o i l
                                                                                shall not be less than 16ECU or more than 18 ECUs per 1000 kg.
                                Article 8                                                                    Article 8
  The common r a t e of excise duty on liquid petroleum gas                and   As from 1 January 1993, the minimum rate of excise duty on
  methane used as road f u e l s h a l l be 85 ECU per 1000 l i t r e s .        liquid petroleum gas and methane used as road fuel shall be
                                                                                 84,5 ECU per 1000 litres.
                                Article 9
                                                                                                              Article 9
  1. The common rate of excise duty on kerosene when used                 as a
     propel lant shall be 340 ECU. per 1000 litres.                                1 . As from 1 January 1993, the minimum rate of excise duty on
                                                                                       kerosene when used as a propel lant s h a l l be 337 ECU per 100G
  2. The common rate of excise duty on kerosene when used for other                    litres.
     purposes shall be 50 ECUs, per 1000 litres.
                                                                                   2. As from 1 January 1993, the rate of e x c i s e duty on kerosene
                                                        ./.                            when used f o r other purposed s h a l l not be less than 47ECU or
                                                                                       more than 53 ECU per 1000 l i t r e s .
2*
où
 ---pagebreak---                                                                  _ H _
                                 Article 10                                                     Article 10
Member States shall bring into force the laws, regulations and         As from 1 January 1993, Member States may adjust their rates of
administrative provisions necessary to comply with this Directive      excise duty on mineral oils provided that such adjustements bring
not later than 31 December 1992. They shall forthwith inform the       their rates more closely into line with the target rates as fixed
Commission of any provisions of national law which they adopt in       in accordance with Article 1.
the field governed by this Directive.
                                                                                                Article 11
                                 Article 11
                                                                       Member States shall bring into force the laws, regulations and
This D i r e c t i v e i s addressed to the Member States.             administrative    provisions necessary    to   comply   with  this
                                                                       Directive not later than 31 December 1992.    They shall forthwith
                                                                       inform the Commission of any provisions of national law which
                                                                       they adopt in the field governed by this Directive.
                                                                       The provisions adopted pursuant to the first paragraph shall make
                                                                       express reference to this Directive.
                                                                                                Article 12
                                                                       This Directive is addressed to the Member States.
                  Done at Brussels          For the Council,               Done at Brussels                   For the Council,
                                            The President                                                     The President
 ---pagebreak--- I. Will application of the present proposal for a Directive result in an
increase in Community resources?
The effect of the proposal for a Directive cannot be qnant.1 fled as regards
VAT own resources.
                                                                  <?o
 ---pagebreak--- STATEMENT QF IMPACT ON SMEs.
Approximation of taras on ml TVWI.1, ollff
The approximation of indirect taxes (VAT and excise duties) is necessary if
tax frontiers are to be abolished and is an integral part of the measures
for completing the internal market.
As to the actual impact, reference should be had to the statement contained
in the 1987 proposal for a Directive (0CM(87)325) in view of the fact that
the situation in the mineral oils sector has changed little in the
intervening two years.
I.   A±ninistrative obligations on businesses arising from application of
the present Directive
- Same constraints as those spelt out in 1987.
II.   What axe the advantages for businesses?
- The advantages resulting from the approximation of rates could not be
  determined.
III.   Are there any drawbacks for businesses in terms of additional costs?
- Application of the present Directive will not impose any additional    costs
IV.   Effects on employment
- The possible effect of the approximation of rates on employment in the
  sector concerned cannot be determined.
V.   The two sides of industry have not been consulted.
VI.   No less binding alternative Is available with a view to aboi 1 shlr.g
tax frontiers.
                                                                      *i
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(89) 526 final
                                                      DOCUMENTS
EN                                                                         06 09
                                 Catalogue number : CB-CO-89-511-EN-C
                                                             ISBN 92-77-54551-8
Office for Official Publications of the European Communities
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