CELEX: 51987PC0324(01)
Language: en
Date: 1987-08-21
Title: PROPOSAL FOR A COUNCIL DIRECTIVE INSTITUTING A PROCESS OF CONVERGENCE OF RATES OF VALUE-ADDED TAX AND EXCISE DUTIES

18.9.87                                Official Journal of the European Communities                              No C 250/3
              Proposal for a Council Directive instituting a process of convergence of rates of value added tax
                                                       and excise duties
                                                      COM(87) 324 final
                               (Submitted by the Commission to the Council on 7 August 1987)
                                                        (87/C 250/03)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                           HAS ADOPTED THIS DIRECTIVE:
Having regard to the Treaty establishing the European                                         Article 1
Economic Community, and in particular Article 99
thereof,                                                                             Value added tax provisions
                                                                   1.     Standstill
Having regard to the proposal from the Commission,
                                                                   Pending the adoption of provisions concerning the
                                                                   number and level of the rates which will have to be
Having regard to the opinion of the European Par-                  applied in the Community in order to permit the
liament,                                                           abolition of the remission of tax on exportation and of
                                                                   the imposition of tax on importation in so far as trade
                                                                   between Member States is concerned, Member States
                                                                   shall refrain from altering the number and level of rates
Having regard to the opinion of the Economic and
                                                                   which they apply at the date of adoption of this
Social Committee,
                                                                   Directive, subject to the rights provided for in the
                                                                   paragraphs below.
Whereas completing the internal market, which is one of
the fundamental objectives of the Community, requires              2.     Optional convergence of the number of tax rates
that fiscal frontiers be abolished. That is to say that the
system of remission of tax on exportation and the
                                                                   Member States which apply:
imposition of tax on importation and of frontier controls
on taxable persons as well as on private persons be
discontinued;                                                      (a) three rates or more may reduce that number to two
                                                                       rates, to be called a reduced rate and a normal rate;
Whereas the measures to be taken to accomplish that                (b) one rate may increase that number to two rates, to
objective ought to be spread over a period of time, but it             be called a reduced rate and a normal rate.
is necessary at present to avoid an increase in the existing
divergence between the fiscal systems of the Member
States and on the contrary to encourage their                      3.     Optional convergence of the tax rates
convergence;
                                                                   Member States may:
Whereas, in order to attain this objective, it is necessary        (a) alter the levels of their reduced and normal tax rates
for the Member States to refrain from altering the                     on condition that they move towards or within the
number and the rates of value added tax; whereas it is                 following limits:
on the other hand desirable that the Member States
should, if they wish, be authorized to alter the number                 (aa) for reduced rates: between 4 % and 9 %,
and the rates of tax which they apply in each situation so              (ab) for normal rates: between 14 °/o and 20 %';
that the substantial differences that currently exist within
the Community may be reduced;
                                                                   (b) reduce or abolish their increased tax rates.
Whereas only the excise duties on tobacco products,
                                                                                              Article 2
alcoholic drinks and mineral oils ought to be maintained
at a Community level; whereas the Member States ought                                  Excise duty provisions
therefore to commit themselves not to introduce new
excise duties or to increase the rates or the scope of             1.     Member States shall refrain from introducing new
existing excise duties; whereas it is appropriate, however,        excise duties or indirect taxes which give rise, in trade
to allow them to move their main excise duty rates                 between Member States, to taxation on importation and
towards the Community rates,                                       remission,of tax on exportation or to frontier controls.
 ---pagebreak--- No C 250/4                               Official Journal of the European Communities                                  18. 9. 87
2.    Member States shall refrain from increasing the               Cigars and cigarillos
rates or enlarging the scope of those excise duties or
                                                                    ad valorem duty plus VAT
indirect taxes which give rise to taxation on importation
and remission of tax on exportation or to frontier                  (as a % of the retail price): between 34 and 36 % ;
controls.                                                           Smoking tobacco
                                                                    ad valorem duty plus VAT
3.    Paragraphs 1 and 2 shall not apply to the excise
duties on manufactured tobacco, alcoholic beverages and             (as a % of the retail price): between 54 and 56 % ;
mineral oils.                                                       Other manufactured tobacco
                                                                    ad valorem duty plus VAT
4.    Pending the adoption of provisions concerning the
rates and/or amounts of excise duty which will have to              (as a % of the retail price): between 41 and 43 %.
be applied in the Community in order to permit the
abolition of import taxation and of export tax remission            Mineral oils
in trade between Member States, the latter may alter the            Leaded petrol and medium oils used as propellant per
rates of excise duty applied to the products set out below          1 000 litres: 340 ECU;
on condition that they move towards the following levels
or amounts:                                                         Unleaded petrol per 1 000 litres: 310 ECU;
                                                                    Liquified petroleum gas (LPG) per 1 000 litres: 85 ECU;
Alcoholic beverages
                                                                    Diesel oil per 1 000 litres: 177 ECU;
Potable spirits (per hi of pure alcohol): 1 271 ECU,
                                                                    Heating gas-oil and medium oils used as fuels other than
Intermediate products (per hi): 85 ECU,                             propellants per 1 000 litres: 50 ECU;
Wines: 17 ECU,                                                      Heavy fuel oil per 1 000 kg: 17 ECU.
Beers per degree Plato per hi: 1,32 ECU.                                                      'Article 3
                                                                    The Member States shall communicate to the
Manufactured tobacco
                                                                    Commission the text of all the provisions of national law
                                                                    which they adopt in the field covered by this Directive.
Cigarettes: specific excise in (ECU per 1 000): 19,5 ECU
 + ad valorem duty plus VAT                                                                   Article 4
(as a % of the retail price): between 52 and 54 % ;                 This Directive is addressed to the Member States.
              Proposal for a Council Directive on approximation of the rates of excise duty on alcoholic
                                   beverages and on the alcohol contained in other products
                                                       COM(87) 328 final
                                (Submitted by the Commission to the Council on 7 August 1987)
                                                         (97/C 250/04)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                            Whereas Council Directives . . . lay down provisions
                                                                    relating to the structures of excise duties applicable
                                                                    respectively to alcohol, wine, beer and intermediate
Having regard to the Treaty establishing the European               products;
Economic Community, and in particular Article 99
thereof,
                                                                    Whereas for the purpose of establishing an internal
                                                                    market without frontiers it is necessary to apply common
Having regard to the proposal from the Commission,                  rates of excise duty to each of these products;
                                                                    Whereas it is necessary to provide for the periodic
Having regard to the opinion of the European Par-                   adjustment of those common rates;
liament,
                                                                    Whereas a reduced rate should be applied                  to
Having regard to the opinion of the Economic and                    undenatured alcohol used in the preparation               of
Social Committee,                                                   perfumes, toiletries and cosmetics;