Report - A6-0030/2008Report
A6-0030/2008

REPORT on the proposal for a Council directive amending Directive 2003/96/EC as regards the adjustment of special tax arrangements for gas oil used as motor fuel for commercial purposes and the coordination of taxation of unleaded petrol and gas oil used as motor fuel

4.2.2008 - (COM(2007)0052 – C6-0109/2007 – 2007/0023(CNS)) - *

Committee on Economic and Monetary Affairs
Rapporteur: Olle Schmidt


Procedure : 2007/0023(CNS)
Document stages in plenary
Document selected :  
A6-0030/2008

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council directive amending Directive 2003/96/EC as regards the adjustment of special tax arrangements for gas oil used as motor fuel for commercial purposes and the coordination of taxation of unleaded petrol and gas oil used as motor fuel

(COM(2007)0052 – C6-0109/2007 – 2007/0023(CNS))

(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2007)0052),

–   having regard to Article 93 of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0109/2007),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Economic and Monetary Affairs (A6-0030/2008),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and the Commission.

Text proposed by the CommissionAmendments by Parliament

Amendment 1

RECITAL 4

(4) While fuel represents a large proportion of the running costs of a road haulage business, wide divergences in the level of taxation applied to gas oil by the Member States can be observed. These divergences lead to fuel tourism and distortions of competition. Enhanced approximation at Community level of the level of taxation applicable to commercial gas oil would address the issue of unfair competition in an efficient manner and would eventually result in better functioning of the internal market and a reduction of damage to the environment.

(4) While fuel represents a large proportion of the running costs of a road haulage business, wide divergences in the level of taxation applied to gas oil by the Member States can be observed. These divergences may lead to fuel tourism and distortions of competition in border regions. Enhanced approximation at Community level of the level of taxation applicable to commercial gas oil would address the issue of unfair competition in an efficient manner and would eventually result in better functioning of the internal market and a reduction of damage to the environment. The approximation of excise duty rates should also take into consideration inflationary effects and the need to strengthen the competitiveness of the European Union. It should be highlighted that the harmonisation of excise duty rates on unleaded petrol and gas oil should not lead to disproportionate requirements for those Member States that otherwise have a tight fiscal policy and a high commitment to anti-inflation.

Justification

In the advent of further enlargement of eurozone, the present detrimental practice notably, the fact that the candidate countries are locked-in to hike their excise duty rates shall be revised. This requirement impedes the capability of relevant Member States to meet the inflation criteria which is a principal precondition to eurozone membership.

Amendment 2

RECITAL 6

(6) From an environmental point of view, it appears appropriate, at this stage, to set the minimum levels of taxation for unleaded petrol and for gas oil. There are no valid reasons to fix national levels of taxation for non-commercial gas oil and unleaded petrol below the national level applicable to commercial gas oil. For Member States, which differentiate between commercial and non-commercial use of gas oil, used as propellant it should therefore be clarified that the national level of taxation for non-commercial gas oil used as propellant shall not be less than the national level applied by that Member State to commercial gas oil. The same should apply between unleaded petrol and commercial gas oil used as propellant.

(6) From an environmental point of view, it appears appropriate, at this stage, to set the minimum levels of taxation for unleaded petrol and for gas oil. There are no valid reasons to fix national levels of taxation for non-commercial gas oil and unleaded petrol below the national level applicable to commercial gas oil. For Member States, which differentiate between commercial and non-commercial use of gas oil, used as propellant it should therefore be clarified that the national level of taxation for non-commercial gas oil used as propellant shall not be less than the national level applied by that Member State to commercial gas oil, without this, however, adversely affecting the user of non commercial gas oil. The same should apply between unleaded petrol and commercial gas oil used as propellant.

Justification

The amendment highlights the relevance of the linkage between commercial and non-commercial-type excise duty rates. If the commercial excise duty rate grows, the burden of the average consumer will rise alike due to the linkage between commercial and non-commercial excise duty rates.

Amendment 3

RECITAL 6 A (new)

 

(6a) Member States that avail themselves of the transitional periods tend, regrettably, not to take steps to catch up with the minimum excise duty standards, contrary to the commitments that they have entered into. Any automatic prolongation of the transitional period is therefore wholly unacceptable. The Commission should report in 2010 on the extent to which those Member States that are approaching the end of the transitional period have fulfilled their obligations.

Justification

The amendment calls on non-supporting of the automatic prolongation regime as this would contribute to the persistence of distortions in competition and fuel tourism in the EU.

Amendment 4

RECITAL 6 B (new)

 

(6b)In order to ensure the coherence of Directive 2003/96/EC with the common transport policy and avoid potential distortions of competition within the haulage markets, the definition of gas oil used as propellant should be modified. It should be established that the definition of commercial use concerns the transport of goods by road carried out by vehicles with a maximum permissible gross laden weight of no less than 3,5 tonnes.

Justification

The whole legislation on EC transport policy contains a definition of heavy goods vehicles used for transports that includes all vehicles having a maximum permissible laden weight of over 3,5 tonnes. There has been a general tendency to align all transport legislations in order to establish the same definition. In particular, the Eurovignette directive (directive 1999/62/EC) has been amended by the directive 2006/38/EC, which introduced a new definition of heavy goods vehicles (vehicles with weight of over 3,5 tonnes) and replaced the previous-one (vehicles with weight of over 7,5 tonnes). In the same line, the Community legislation concerning the access to the international road haulage market (Regulation 881/92, Commission proposal COM(2007)265) applies to heavy goods vehicles with a weigh of over 3,5 tonnes. There is no reason to keep only in Directive 2003/96 a different definition, which may lead to competitive disadvantages for small haulers.

Amendment 5

RECITAL 7

(7) Certain Member States have been granted transitional periods in order to smoothly adapt to the levels of taxation set out in Directive 2003/96/CE. For the same reasons, these transitional periods should be supplemented with regard to this Directive.

(7) Certain Member States have been granted transitional periods in order to smoothly adapt to the levels of taxation set out in Directive 2003/96/EC. For some of those Member States, these transitional periods should be supplemented with regard to this Directive.

Amendment 6

RECITAL 10

(10) The possibility for Member States to fix a reduced rate on gas oil for commercial purposes below the national level in force on 1 January 2003, when introducing or applying a system of road user charges which results in a broadly equivalent overall tax burden, should be extended. To this end and in the light of experience, it is appropriate to no longer maintain the requirement whereby the national level of taxation in force on 1 January 2003 for gas oil used as propellant must be at least twice as high as the minimum level of taxation applicable on 1 January 2004.

(10) The possibility for Member States to fix a reduced rate on gas oil for commercial purposes when introducing or applying a system of road user charges which results in a broadly equivalent overall tax burden, should be extended. It should also be made possible for Member States to promote the use of non-fossil and low-carbon based propellants through both tax incentives and schemes aimed at guaranteeing a certain level of consumption of those propellants. To this end and in the light of experience, it is appropriate to no longer maintain the requirement whereby the national level of taxation in force on 1 January 2003 for gas oil used as propellant must be at least twice as high as the minimum level of taxation applicable on 1 January 2004.

Justification

If used, by rule, as a portion of any motor fuel could yield substantial environmental benefits.

Amendment 7

RECITAL 10 A (new)

 

(10a) While fully acknowledging the principle of subsidiarity, Member States that gain additional revenues from the implementation of this Directive should be encouraged to reinvest them primarily in infrastructure, biofuels and new environmental measures aimed at reducing CO2 emissions.

Justification

As part of an overall strategy biofuels can also contribute to environmental goals and has the potential to reduce greenhouse gas emissions.

Amendment 8

ARTICLE 1, POINT 1, POINT (A)

Article 7, paragraph 1 (Directive 2003/96/EC)

1. As from 1 January 2004, 1 January 2010, 1 January 2012 and 1 January 2014 the minimum levels of taxation applicable to motor fuels shall be fixed as set out in Annex I Table A.

1. As from 1 January 2004, 1 January 2010, 1 January 2012 and 1 January2015 the minimum levels of taxation applicable to motor fuels shall be fixed as set out in Annex I Table A.

Justification

This article must be brought into line with the dates mentioned in table A.

Amendment 9

ARTICLE 1, POINT 1, POINT (A)

Article 7, paragraph 2, subparagraph 1 (Directive 2003/96/EC)

2. Member States may differentiate between commercial and non-commercial use of gas oil used as propellant, provided that the Community minimum levels are observed,and the rate for commercial gas oil used as propellant does not fall below the national level of taxation in force on 1 January 2003.

2. Member States may differentiate between commercial and non-commercial use of gas oil used as propellant, provided that the Community minimum levels are observed.

Justification

In order to enable convergence of excise duty rates among member states the EU should not only increase the obligatory minimum levels of rates but also allow governments to lower their excise duty rates if they find it necessary, provided that the Community minimum levels are observed. This solution would enable more fairly share the burden of adjustment linked to the convergence of excise duty rates.

Amendment 10

ARTICLE 1, POINT 1, POINT (AA) (new)

Article 7, paragraph 3, point (a) (Directive 2003/96/EC)

 

(aa) Point (a) of paragraph 3 shall be replaced by the following:

“(a) the carriage of goods for hire or reward, or on own account, by motor vehicles or articulated vehicle combinations intended exclusively for the carriage of goods by road and with a maximum permissible gross laden weight of not less than 3,5 tonnes;”

Justification

The whole legislation on EC transport policy contains a definition of heavy goods vehicles used for transports that includes all vehicles having a maximum permissible laden weight of over 3,5 tonnes. There has been a general tendency to align all transport legislations in order to establish the same definition. In particular, the Eurovignette directive (directive 1999/62/EC) has been amended by the directive 2006/38/EC, which introduced a new definition of heavy goods vehicles (vehicles with weight of over 3,5 tonnes) and replaced the previous-one (vehicles with weight of over 7,5 tonnes). In the same line, the Community legislation concerning the access to the international road haulage market (Regulation 881/92, Commission proposal COM(2007)265) applies to heavy goods vehicles with a weigh of over 3,5 tonnes. There is no reason to keep only in Directive 2003/96 a different definition, which may lead to competitive disadvantages for small haulers.

Amendment 11

ARTICLE 1, POINT 1, POINT (B)

Article 7, paragraph 4 (Directive 2003/96/EC)

4. Member States which apply or introduce a system of road user charges to motor vehicles using commercial gas oil as defined in paragraph 3, may apply a reduced rate to such gas oil that goes below the national level of taxation in force on 1 January 2003, as long as the overall tax burden remains broadly equivalent, and provided that the Community minimum level applicable to gas oil is observed.

4. Member States may apply or introduce a system of road user charges to motor vehicles using commercial gas oil as defined in paragraph 3, provided that the Community minimum level applicable to gas oil is observed.

Amendment 12

ARTICLE 1, POINT 1, POINT (C)

Article 7, paragraph 5, subparagraph 2 (Directive 2003/96/EC)

The Commission shall establish common rules as to the mechanisms referred to in the first subparagraph, in accordance with the procedure referred to in Article 27(2).

No later than ...*, the Commission shall establish common rules as to the mechanisms referred to in the first subparagraph, in accordance with the procedure referred to in Article 27(2).

_____________

* six months after the adoption of this Directive.

Justification

Common rules for a refund mechanism are essential to ensure that refunding under conditions that are equal, transparent and simple. Moreover, common rules will prevent distortions of the single market.

Amendment 13

ARTICLE 1, POINT 2

Article 18 (Directive 2003/96/EC)

(2) Article 18 is amended as follows:

(2) Article 18 is amended as follows:

(a) In paragraph 3, the first sentence is replaced by the following:

(a) In paragraph 3, the first sentence is deleted.

“The Kingdom of Spain may apply a transitional period until 1 January 2007 to adjust its national level of taxation on gas oil used as propellant to the new minimum level of EUR 302, until 1 January 2012 to reach EUR 330, until 1 January 2014 to reach EUR 359 and until 1 January 2016 to reach EUR 380.”

 

(b) In paragraph 4, the first sentence is replaced by the following:

(b) In paragraph 4, the first sentence is deleted.

“The Republic of Austria may apply a transitional period until 1 January 2007 to adjust its national level of taxation on gas oil used as propellant to the new minimum level of EUR 302, until 1 January 2012 to reach EUR 330, until 1 January 2014 to reach EUR 359 and until 1 January 2016 to reach EUR 380.”

 

(c) In paragraph 5, the first sentence is replaced by the following:

(c) In paragraph 5, the first sentence is deleted.

“The Kingdom of Belgium may apply a transitional period until 1 January 2007 to adjust its national level of taxation on gas oil used as propellant to the new minimum level of EUR 302, until 1 January 2012 to reach EUR 330, until 1 January 2014 to reach EUR 359 and until 1 January 2016 to reach EUR 380.”

 

(d) In paragraph 6, the first sentence is replaced by the following:

(d) In paragraph 6, the first sentence is deleted.

“The Grand Duchy of Luxembourg may apply a transitional period until 1 January 2009 to adjust its national level of taxation on gas oil used as propellant to the new minimum level of EUR 302, until 1 January 2012 to reach EUR 330, until 1 January 2014 to reach EUR 359 and until 1 January 2016 to reach EUR 380.”

 

(e) In paragraph 7, in the second sub-paragraph, the first sentence is replaced by the following:

(e) In paragraph 7, in the second sub-paragraph, the first sentence is deleted.

“The Portuguese Republic may apply a transitional period until 1 January 2009 to adjust its national level of taxation on gas oil used as propellant to the new minimum level of EUR 302, until 1 January 2012 to reach EUR 330, until 1 January 2014 to reach EUR 359 and until 1 January 2016 to reach EUR 380.”

 

(f) In paragraph 8, in the third sub-paragraph, the first sentence is replaced by the following:

(f) In paragraph 8, in the third sub-paragraph, the first sentence is deleted.

“The Hellenic Republic may apply a transitional period until 1 January 2010 to adjust its national level of taxation on gas oil used as propellant to the new minimum level of EUR 302, until 1 January 2012 to reach EUR 330, until 1 January 2014 to reach EUR 359 and until 1 January 2016 to reach EUR 380.”

 

Justification

This article must be brought into line with the dates mentioned in table A.

Amendment 14

ARTICLE 1, POINT 3, POINT (A)

Article 18a, paragraph 5 (Directive 2003/96/EC)

The Republic of Latvia may apply a transitional period until 1 January 2011 to adjust its national level of taxation on gas oil and kerosene used as propellant to the new minimum level of EUR 302 per 1000 l, until 1 January 2013 to reach EUR 330 and, for gas oil used as propellant, until 1 January 2015 to reach EUR 359 and until 1 January 2017 to reach EUR 380.

The Republic of Latvia may apply a transitional period until 1 January2012 to adjust its national level of taxation on gas oil and kerosene used as propellant to the new minimum level of EUR 302 per 1000 l, until 1 January 2013 to reach EUR 330 and, for gas oil used as propellant and until 1 January 2016to reach EUR 359.

Justification

For low income member states that joined the EU recently and have already introduced substantial excise duty increases on fuels, the derogation periods should be extended to give them more time to adjust.

Amendment 15

ARTICLE 1, POINT 3, POINT (B)

Article 18a, paragraph 6 (Directive 2003/96/EC)

The Republic of Lithuania may apply a transitional period until 1 January 2011 to adjust its national level of taxation on gas oil and kerosene used as propellant to the new minimum level of EUR 302 per 1000 l, until 1 January 2013 to reach EUR 330 and, for gas oil used as propellant,until 1 January 2015 to reach EUR 359 and until 1 January 2017 to reach EUR 380.

The Republic of Lithuania may apply a transitional period until 1 January2012 to adjust its national level of taxation on gas oil and kerosene used as propellant to the new minimum level of EUR 302 per 1000 l, until 1 January 2013 to reach EUR 330 and, for gas oil used as propellant and until 1 January 2016 to reach EUR 359.

Justification

For low income member states that joined the EU recently and have already introduced substantial excise duty increases on fuels, the derogation periods should be extended to give them more time to adjust.

Amendment 16

ARTICLE 1, POINT 3, POINT (C)

Article 18a, paragraph 9 (Directive 2003/96/EC)

The Republic of Poland may apply a transitional period until 1 January 2010 to adjust its national level of taxation on gas oil used as propellant to the new minimum level of EUR 302 per 1000 l, until 1 January 2012 to reach EUR 330, until 1 January 2014 to reach EUR 359 and until 1 January 2016 to reach EUR 380.

The Republic of Poland may apply a transitional period until 1 January2012 to adjust its national level of taxation on gas oil used as propellant to the new minimum level of EUR 302 per 1000 l, until 1 January2013 to reach EUR 330 and until 1 January2016 to reach EUR 359.

Justification

For low income member states that joined the EU recently and have already introduced substantial excise duty increases on fuels, the derogation periods should be extended to give them more time to adjust.

Amendment 17

ARTICLE 1, POINT 4

Article 18c (Directive 2003/96/EC)

Without prejudice to the derogations from Article 7 laid down in the Treaty concerning the accession of the Republic of Bulgaria and Romania to the European Union. Those Member States may apply a further transitional period for gas oil used as propellant until 1 January 2015 to reach EUR 359 and until 1 January 2017 to reach EUR 380.

Without prejudice to the derogations from Article 7 laid down in the Treaty concerning the accession of the Republic of Bulgaria and Romania to the European Union. Those Member States may apply a further transitional period for gas oil used as propellant and until 1 January 2016 to reach EUR 359.

Justification

For low income member states that joined the EU recently and have already introduced substantial excise duty increases on fuels, the derogation periods should be extended to give them more time to adjust.

Amendment 18

ARTICLE 1, POINT 5

Annex I, Table A (Directive 2003/96/EC)

Text proposed by the Commission

 

1 January 2004

1 January 2010

1 January 2012

1 January 2014

Unleaded petrol

(in euros per

1 000 l)

CN Codes 2710 11 31, 2710 11 41, 2710 11 45 and 2710 11 49

359

359

359

380

Gas oil

(in euros per

1 000 l)

CN codes 2710 19 41 to 2710 19 49

302

330

359

380

Amendment by Parliament

 

1 January 2004

1 January 2010

1 January 2012

1 January 2015

Unleaded petrol

(in euros per

1 000 l)

CN Codes 2710 11 31, 2710 11 41, 2710 11 45 and 2710 11 49

359

359

359

359

Gas oil

(in euros per

1 000 l)

CN codes 2710 19 41 to 2710 19 49

302

330

340

359

Justification

Minimum rates should be sufficiently high to promote sustainable consumption of petrol and gas oil.

Amendment 19

ARTICLE 1, POINT 5

Annex I, Table A, Note (new) (Directive 2003/96/EC)

Without prejudice to the time periods laid down in Article 18a, paragraphs 5, 6 and 9 and Article 18c, the following provisions will apply:

 

Excise duty rates on both unleaded petrol and gas oil shall not be less than EUR 359 per 1 000 litres before 1 January 2015.

 

Member States that are required under Community legislation to increase the excise duty rate on gas oil to EUR 340 per 1 000 litres by 1 January 2012 must impose a rate of at least EUR 359 per 1 000 litres by 1 January 2015.

Member States in which the excise duty rate on gas oil exceeded EUR 400 per 1 000 litres on 1 January 2008 will not raise the excise duty rate on gas oil further until 1 January 2015.

 

 

Member States in which the excise duty rate on unleaded petrol exceeded EUR 500 per 1 000 litres on 1 January 2008 will not increase that rate further until 1 January 2015.

Justification

The amendment aims at establishing the necessary level playing field for non-eurozone Member States in meeting the sustainability requirement concerning inflation criteria in one hand and the convergence of the tax level on the other. See amendment 31.

Amendment 20

ARTICLE 1, POINT 5 A (new)

Article 29a (new) (Directive 2003/96/EC)

 

(5a) The following Article 29a shall be inserted:

 

“Article 29a

 

The Commission shall report on the fulfilment of the obligations of those Member States in which a transitional period expires in 2010.”

Justification

The amendment calls on establishment of Commission assessment which reports on the evolution of the Members States' duty on increasing excise duty rate.

EXPLANATORY STATEMENT

Generally your draftsman agrees with the Commissions objective to reduce the distortion of competition in the haulage market. The best way to address the problem of competition would be through full harmonisation. In this context, it should be underlined that the existence of price differences on petrol and gas oil across the internal market is not in itself an indication of a distorted haulage market.

Your draftsman recognises that the Commissions proposal contribute very limited to reducing environmental damage through transport related tax policy. It is clear that such policies can, if tough enough, bring about behavioural change among consumers and businesses and thereby ensure that CO2-emissions are lowered. However, your draftsman questions whether the Commissions proposal will significantly help the Community in meeting its environmental commitments, including the Kyoto-protocol.

Your draftsman considers that given the significant environmental challenges climate change pose not only to the Community but to the globe that the Commission must play a much stronger role in promoting the use of environmentally friendly products through bold and innovative "green" EU measures, including the area of taxation. In this context tax competition, used to promote sustainable consumption and protection of the environment, should be encouraged e.g. through linking the revenue gained from "green" taxes to promotion of development of "green" products and production processes. Therefore your draftsman favours allowing Member States to use tax measures to promote the use of non-petroleum based propellants.

Against that background, your draftsman is of the opinion that the Commission’s proposal does not allow Member States the flexibility required to promote the use of non-petroleum based propellants.

Member States should, in line with the principle of subsidiarity, be given more flexibility by allowing them inter alia to reduce the tax rates for propellants used in the most energy efficient engines, for non-petroleum based propellants. This would provide legal certainty for businesses while at the same time allowing for competition. It would provide Member States with opportunities to promote the use of cleaner technologies in pursuit of reducing CO2 emissions and meeting other international environmental commitments.

Moreover, your draftsman considers that higher minimum rates would have a more positive impact on the consumption pattern of consumers and businesses. Existing transitional regimes should not be extended and no new transitional arrangements should be introduced.

PROCEDURE

Title

Taxation of unleaded petrol and gas oil

References

COM(2007)0052 – C6-0109/2007 – 2007/0023(CNS)

Date of consulting Parliament

19.4.2007

Committee responsible

       Date announced in plenary

ECON

26.4.2007

Committee(s) asked for opinion(s)

       Date announced in plenary

ENVI

26.4.2007

ITRE

26.4.2007

TRAN

26.4.2007

 

Not delivering opinions

       Date of decision

ENVI

3.5.2007

ITRE

7.6.2007

TRAN

10.4.2007

 

Rapporteur(s)

       Date appointed

Olle Schmidt

22.5.2007

 

 

Discussed in committee

8.10.2007

5.11.2007

 

 

Date adopted

29.1.2008

 

 

 

Result of final vote

+:

–:

0:

37

1

1

Members present for the final vote

Gabriele Albertini, Mariela Velichkova Baeva, Zsolt László Becsey, Pervenche Berès, Slavi Binev, Sebastian Valentin Bodu, Udo Bullmann, Manuel António dos Santos, Christian Ehler, Elisa Ferreira, José Manuel García-Margallo y Marfil, Jean-Paul Gauzès, Donata Gottardi, Gunnar Hökmark, Karsten Friedrich Hoppenstedt, Sophia in ‘t Veld, Piia-Noora Kauppi, Guntars Krasts, Astrid Lulling, Hans-Peter Martin, Gay Mitchell, Cristobal Montoro Romero, John Purvis, Alexander Radwan, Bernhard Rapkay, Dariusz Rosati, Heide Rühle, Antolín Sánchez Presedo, Olle Schmidt, Peter Skinner, Margarita Starkevičiūtė, Ivo Strejček, Ieke van den Burg, Cornelis Visser, Sahra Wagenknecht

Substitute(s) present for the final vote

Katerina Batzeli, Daniel Dăianu, Harald Ettl, Werner Langen, Vladimír Maňka, Thomas Mann, Bilyana Ilieva Raeva, Margaritis Schinas, Andreas Schwab, Charles Tannock

Substitute(s) under Rule 178(2) present for the final vote

Metin Kazak, Alfonso Andria