Nieuwe lidstaten krijgen meer tijd voor doorvoeren energiebelastingen (en)

The European Commission has presented a proposal to amend the Energy Tax Directive (see IP/03/1456) so as to allow the EU accession countries temporarily to apply excise duty exemptions or lower rates of duty than the EU-wide minimum rates normally required on all energy products (mineral oils, coal, natural gas) and electricity. The varying arrangements proposed cover all the accession countries except Cyprus, which has not requested any measures in addition to those which it was granted under the Treaty of Accession. The arrangements would be along the lines of those allowed to existing Member States. In particular, they would be strictly limited in time and would generally last no longer than 2012; they would be proportionate to the effective problems that they are designed to address; and they would, where relevant, include a progressive alignment towards the relevant EU minimum rates. The likely price increases if excise duties had to be raised by 1 May 2004 in the accession countries could negatively affect their economies and could in particular constitute a heavy burden for small companies and for poorer households. The proposal, which must be adopted unanimously by the EU's Council of Ministers, would come into force on 1 May 2004, the date by which the accession countries will be required to apply the Energy Tax Directive.

"This proposal would allow accession countries equivalent opportunities for transitional arrangements before full implementation of the Energy Tax Directive to those which existing Member States enjoy" commented European Commissioner for Taxation Frits Bolkestein. "Although some of the exemptions proposed would last a rather long time, all would be time-limited and the extension of the Directive to the ten new Member States will be a major step forward in the functioning of the Internal Market and in meeting environmental objectives".

The proposal would ensure that the principles which governed the granting of transitional periods for existing Member States would apply equally to the accession Member States. The measures proposed (see Annex for details) would therefore be:

strictly limited in time and generally last no longer than 2012

proportionate to the effective problem they address

include, where relevant, a progressive alignment towards the EU applicable minimum rates.

The main justification provided by the accession countries and accepted by the Commission for the differing transitional arrangements is the fact that the likely price increases if excise duties had to be raised by 1 May 2004 could negatively affect their economies and could in particular constitute a heavy burden for SMEs and for poorer households.

The Commission's proposal was made on the basis of requests received from the accession countries, from all except Cyprus. The Accession Treaty of 16 April 2003 provides with respect to EU legislation adopted after 16 April 2003, such as the Energy Tax Directive, that the accession countries must have the opportunity to submit requests for any exemptions with respect to such legislation that they regard as necessary. The Commission must examine any such requests and make a proposal to the Council if it considers this justified. The Commission viewed as acceptable most of the requests that the accession countries made in the case of the Energy Tax Directive to be allowed to apply exemptions or rates lower than the EU minimum rates. It proposed that a few exemptions requested for either unlimited or for excessively long periods of time should be subject to proportionate time limits and it rejected one request, concerning a tax exemption for waste oils, because it would have contradicted EU environmental policy.

The Treaty of Accession grants very few exemptions to accession countries in respect of excise duties on energy products. It authorises Cyprus to apply until 1 May 2005 an exemption from excise duties on mineral oils used for the production of cement and an exemption from additional excise duties on all types of fuel used for local passenger transport. The Treaty also authorises Poland to maintain a reduced rate of excise duty on certain biofuels until 1 May 2005.

While some accession countries already comply with the EU minimum excise duty rates on energy products in at least some areas, other countries' rates have not yet been aligned.

Energy Tax Directive

The EU's Council of Ministers on 27 October 2003 adopted a Directive which widened the scope of the EU minimum rate system, previously limited to mineral oils, to all energy products including coal, natural gas and electricity. In particular, the Directive was intended to reduce distortions of competition between Member States as a result of divergent rates of tax; reduce distortions of competition between mineral oils and the other energy products that were not previously subject to EU tax legislation; increase the incentive to use energy more efficiently (so as to reduce dependency on imported energy and cut carbon dioxide emissions); and allow Member States to offer companies tax incentives in return for specific undertakings to reduce emissions. The Directive entered into force on 1st January 2004.

The full text of the Commission proposal to allow certain Member States to apply, in respect of energy products and electricity, temporary exemptions or reductions in the level of taxation is available on the Europa internet site:

http://europa.eu.int/comm/taxation_customs/whatsnew.htm

Annex

Proposed transitional arrangements for accession countries concerning energy taxation

Diesel and kerosene used as propellant (EU minimum rate: €302/1000 litres from 1/1/2004 and €330 from 1/1/2010):

Estonia (diesel only), Malta (diesel and kerosene): Gradual alignment up to €330 by 1/1/2010. However, level of tax must not be less than €245 from 1/5/2004

Latvia & Lithuania (diesel and kerosene): Gradual alignment up to €302 by 1/1/ 2011 and to €330 by 1/1/2013. However, level of tax must not be less than €245 from 1/5/2004 and not less than €274 from 1/1/2008.

Poland (diesel): Gradual alignment up to €302 by 1/1/2011 and €330 by 1/1/ 2013. However, level of tax must not be less than €245 from 1/5/2004 and not less than €274 from 1/1/2008.

Leaded petrol (EU minimum rate: €421/1000 litres from 1/1/ 2004)

Malta: Gradual alignment up to 1/1/2010. However, level of tax must not be less than €337 from 1/5/2004

Unleaded petrol (EU minimum rate: 359 €/1000 litres from 1/1/ 2004)

Estonia, Malta: Gradual alignment up to 1/1/2010. However, level of tax must not be less than €287 from 1/5/2004.

Latvia, Lithuania: Gradual alignment up to 1/1/2011. However, level of tax must not be less than €287 from 1/5/2004 and not less than €323 from 1/1/2008.

Poland: Gradual alignment up to 1/1/2009. However, level of tax must not be less than €287 from 1/5/2004.

Diesel used for heating (EU minimum rate: 21 €/1000 l. from 1/1/2004)

Poland (for diesel used as heating fuel by schools, nursery schools and other public utilities): Total or partial exemptions or reductions up to 1/1/2008

Heavy fuel oil used for heating purposes (EU minimum rate: 15€/1000 kg from 1/1/2004)

Latvia (heavy fuel oil used for district heating): Gradual alignment up to 1/1/ 2010 but rate cannot be less than 50% of EU minimum rate as from 1/1/2007

Malta: Gradual alignment up to 1/1/2009 but rate cannot be less than 50% of the EU minimum from 1/1/ 2007

Poland: Gradual alignment up to 1/1/2008. However, level of tax cannot be less than €13 from 1/1/2004

Electricity (EU minimum rate: 0.5 €/MWh for business and 1.0 €/MWh for non-business from 1/1/2004)

Czech Republic: Total or partial exemption or reductions until 1/1/2008

Estonia: Until 1/1/2010 to convert current input electricity taxation system into an output taxation system

Hungary (for district heating), Latvia, Malta, Slovakia: Gradual alignment up to 1/1/2010 but rate cannot be less than 50% of the EU minimum rate as from 1/1/2007

Lithuania: Full exemption until 1/1/2010

Poland: Gradual alignment up to 1/1/2006

Natural Gas (EU minimum rate: 0.15 €/gigajoule for business and 0.3 €/gigajoule for non/business) from 1/1/2004)

Czech Republic (district heating): Total or partial exemption or reductions in tax levels up to 1/1/2008

Hungary (for district heating), Malta, Slovakia: Gradual alignment up to 1/1/2010 but rate cannot be less than 50% of EU minimum rate as from 1/1/2007

Latvia, Poland, Slovenia: Exemption already permitted under the Energy Tax Directive which allows an exemption on natural gas in those Member States in which the share of natural gas in final energy consumption was less than 15 % in 2000. Exemption is for a maximum period of ten years after the entry into force of this Directive or until the national share of natural gas in final energy consumption reaches 25 %, whichever is the sooner.

Lithuania: Exemption until 1/1/2010

Coal and coke (EU minimum rate: 0.15 €/gigajoule for business and 0.3 €/gigajoule for non/business) from 1/1/2004)

Czech Republic: Total or partial exemption or reductions until 1/1/2008

Hungary, Poland (coal used for district heating): Gradual alignment up to 1/1/2010. However, effective tax rate cannot be less than 50% of EU minimum from 1/1/2007.

Latvia (coal and coke), Malta (solid fuels), Hungary and Poland (coal used for purposes other than district heating), Slovakia (solid fuels): Gradual alignment up to 1/1/2009. However, effective tax rate cannot be less than 50% of EU minimum from 1/1/2007

Hungary (coal and coke): Exemption until 1/1/2009

Lithuania (coal, coke and lignite): Full exemption until 1/1/2007

Oil Shale (EU minimum rate: as for coal - see above)

Estonia: Total or partial exemption until 1/1/2009, reduction up to 50% of EU rate up to 1/1/2013

Shale Oil (EU minimum rate: 15 € for 1000 kg)

Estonia: For district heating only, gradual alignment up to 1/1/2010. However, effective tax rate cannot be less than 50% of EU minimum from 1/1/2007

Orimulsion (EU minimum rate: as for coal see above)

Lithuania: Exemption when used for purposes other than the production of electricity or heat up to 1 /1/2010

Other exemptions (EU minimum rate depends on the fuel used)

Malta: tax reduction up to 31/12/2006 for fuel used in private pleasure craft and private pleasure flying

Latvia: reduced rate of taxation or exemption until 31/12/2006 for energy products and electricity used in local public passenger transport vehicles

Poland: reduced rate of taxation or exemption for some fuels (used by aviation engines, ship engines, for sea technology) until 31/12/2006.