REPORT on the proposal for a Council decision on the AIEM tax applicable in the Canary Islands

18.9.2020 - (COM(2020)0355 – C9‑0280/2020 – 2020/0163(CNS)) - *

Committee on Regional Development
Rapporteur: Younous Omarjee
(Simplified procedure – Rule 52(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council decision on the AIEM tax applicable in the Canary Islands

(COM(2020)0355 – C9‑0280/2020 – 2020/0163(CNS))

(Special legislative procedure – consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2020)0355),

– having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9‑0280/2020),

– having regard to Rule 82 of its Rules of Procedure,

– having regard to the report of the Committee on Regional Development (A9-0157/2020),

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

A. Legal background

 

Article 349 TFEU allows for derogations from EU rules in the outermost regions, in order to partly compensate for the permanence and combination of a large range of constraints affecting their economic and social development. This proposal is one of a number of proposals which apply specific measures in the area of taxation for the duration of the next Multiannual Financial Framework, i.e. 2021-2027.

 

B. Scope of the tax derogation

 

Article 1 of the proposed decision would allow for full or partial exemptions for locally produced goods from the ‘Arbitrio sobre las Importaciones y Entregas de Mercancías en las islas Canarias (AIEM)’, which is a tax on goods in the Canary Islands. This derogation has existed since 2002, and serves to partially compensate the local industry for the increased production costs related to the isolation of the Canary Islands. The exemptions cannot affect the price of the goods in question by more than 15%, or exceed an overall annual ceiling of EUR 150 million.

 

C. Definition of the goods covered

 

The categories of goods which may be covered by the exemptions are set out in Annex I, by reference to the EU nomenclature. However, the Spanish authorities are to fix the list of specific locally produced goods covered, and the level of the exemption in each case, within the limits of this exemption decision. Article 2 sets out the following three criteria for this decision: there must be a local production with a local market share of no less than 5%; there must be a significant importation of goods which could jeopardise the continuation of local production, with a local market share of at least 10%; and there must be additional local production costs compromising the competitiveness of local production. Limited exceptions from these criteria are possible, for example to ensure local food security and medical supplies.

 

D. Reporting

 

Spain must provide the list of exempted goods, and any changes thereto, to the Commission in accordance with Article 3. The decision creates an obligation for Spain to report on the implementation and impact of the derogation, in relation to each category of exempted goods, in line with Article 4 and Annex II.

 

E. Assessment of the rapporteur

 

Your rapporteur considers that this proposal with specific taxation rules is justified and fully in line with Article 349. There is no danger of a distortion of the internal market. He therefore suggests that this proposed decision should be approved by Parliament without amendment, under the simplified procedure set out in Rule 52(1) of the Rules of Procedure.

PROCEDURE – COMMITTEE RESPONSIBLE

Title	AIEM tax in the Canary Islands
References	COM(2020)0355 – C9-0280/2020 – 2020/0163(CNS)
Date of consulting Parliament	31.8.2020
Committee responsible  Date announced in plenary	REGI 14.9.2020
Committees asked for opinions  Date announced in plenary	ECON 14.9.2020	PECH 14.9.2020
Not delivering opinions  Date of decision	ECON 7.9.2020	PECH 26.8.2020
Rapporteurs  Date appointed	Younous Omarjee 11.8.2020
Simplified procedure - date of decision	7.9.2020
Date adopted	7.9.2020
Date tabled	18.9.2020