Procedure : 2013/0413(CNS)
Document stages in plenary
Document selected : A7-0013/2014

Texts tabled :

A7-0013/2014

Debates :

Votes :

PV 16/01/2014 - 8.2

Texts adopted :

P7_TA(2014)0034

REPORT     *
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8 January 2014
PE 526.050v02-00 A7-0013/2014

on the proposal for a Council decision authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and amending Decision 2007/659/EC

(COM(2013)0839 – C7-0488/2013 – 2013/0413(CNS))

Committee on Regional Development

Rapporteur: Danuta Maria Hübner

(Simplified procedure - Rule 46(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 EXPLANATORY STATEMENT
 PROCEDURE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council decision authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and amending Decision 2007/659/EC

(COM(2013)0839 – C7-0488/2013 – 2013/0413(CNS))

(Special legislative procedure – consultation)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2013)0839),

–   having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0488/2013),

–   having regard to Rules 55 and 46(1) of its Rules of Procedure,

–   having regard to the report of the Committee on Regional Development (A7-0013/2014),

1.  Approves the Commission proposal;

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

3.  Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;

4.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.


EXPLANATORY STATEMENT

Council Decision 2007/659/EC of 9 October 2007, adopted on the basis of Article 299(2) of the EC Treaty (now Article 349 TFEU), as amended by Council Decision 896/2011/EU of 19 December 2011 authorises France to apply to 'traditional' rum produced in its overseas departments and sold on the French mainland a reduced rate of excise duty which may be lower than the minimum rate of excise duty set by Directive 92/84/EEC but not more than 50% lower than the standard national excise duty on alcohol. The reduction in excise duty is limited to an annual quota of 120 000 hl of pure alcohol. This derogation expires on 31 December 2013.

The purpose of this measure is to compensate the producers from the French Overseas Departments for their competitive disadvantage triggered by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, notably the sugar-cane-rum value chain, the permanence and combination of which severely restrain their development.

On 12 March 2013, the French authorities asked the Commission to submit a proposal for a Council Decision extending Council Decision 2007/659/EC under the same conditions, for a further seven years until 31 December 2020. This request was supplemented and modified on 3 July and 2 August 2013. In particular, the French authorities asked the Commission to extend the scope of the Council Decision so as to apply also to the “cotisation sur les boissons alcooliques” (also known as the “Vignette Sécurité Sociale (VSS)), a contribution levied for the National Sickness Insurance Fund on alcoholic beverages to counter the health risks involved in immoderate use of this product, and to amend Council Decision 2007/695/EC retroactively, i.e. as of 1 January 2012 by extending it to cover the VSS so that a lower rate can be applied to ‘traditional’ rum produced in the four French outermost regions listed in Council Decision 2007/659/EC.

On the basis of these requests, the Commission proposes that for 2014-2020 France be allowed to apply a reduced rate of excise duty and VSS of up to 50% of the respective standard rates but that the cumulative reduction in both excise duty and VSS is not higher than 50% of the full rate for alcohol set in application of Article 3 of Directive 92/84/EEC.

It is also proposed that France draw up a mid-term report addressed to the Commission by 31 July 2017 so that it can be assessed whether the reasons which justify the granting of the tax derogation still apply and whether the fiscal advantage granted by France remains proportionate and sufficient to support a competitive cane-sugar-rum value chain in Guadeloupe, French Guiana, Martinique and Réunion. This report should also provide information on “marketing costs”. In case the information provided demonstrates that the tax derogation is not, partly or entirely, justified any more, or it is less suitable than alternative measures for competitiveness reasons and also in view of its international dimension, a phasing out process could be introduced until the end of the period.

Given the urgency in adopting this measure and that it aims at stimulating the economy of outermost regions, the Chair proposes that this proposal be adopted without amendment, in accordance with Rule 46(1) of the Rules of Procedure.


PROCEDURE

Title

Authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique

References

COM(2013)0839 – C7-0488/2013 – 2013/0413(CNS)

Date of consulting Parliament

23.12.2013

 

 

 

Committee responsible

       Date announced in plenary

REGI

 

 

 

 

Committee(s) asked for opinion(s)

       Date announced in plenary

ECON

 

AGRI

 

 

 

Not delivering opinions

       Date of decision

ECON

9.12.2013

AGRI

9.12.2013

 

 

Rapporteur(s)

       Date appointed

Danuta Maria Hübner

18.12.2013

 

 

 

Simplified procedure - date of decision

18.12.2013

Date adopted

18.12.2013

 

 

 

Date tabled

8.1.2014

Last updated: 9 January 2014Legal notice