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Disel oil


Carafate how much The European Parliament adopted, by 447 in favour to 64 against with 39 abstentions, a legislative resolution amending the proposal to amend a Directive on the adjustment of special tax arrangements for gas oil and the coordination of taxation of unleaded petrol and gas oil. The Parliament approved the increase of minimum excise duties on gas oil to be applied at a slower pace for some of the new Member States, including Bulgaria.
The European Commission ascertains that wide divergences in the level of taxation applied to gas oil by the Member States can be observed, that may lead to fuel tourism and distortions of competition (hauler companies, dealing with international transport services and/or are located near borders with lower taxation countries, tanking in Member States with lowest taxation).
In theory, since any driver is free to choose where to tank in the European Union, irrespective from his country of origin, there should not be any distortions of competition. Yet, because of geographical and business constraints, not all haulers can tank in the cheapest markets. Since operator competing on the same markets may not all enjoy the same possibilities of purchasing low-tax fuel, fuel tourism may create distortions: the difference in fuel costs may reach even to 20% per 1 000 km.
Fuel tourism has also some negative environmental consequences, in case detours are made.
The Directive, proposed by the Commission aims to lower the differences of fuel taxation levels, the competition distortions and the environmental harms.
According to the Commission, the unleaded petrol and the gas oil are similarly detrimental to the environment, so no ecological reason exists why minimum level of taxation applicable should not be made equal for both. Accordingly the Commission proposes increasing the diesel oil excise minimal level to reach the one of the petrol.
The position of the Parliament
The Committee on Economic and Monetary Affairs in the European Parliament adopted the report by Olle Schmidt (ALDE, SE), and supported the proposal that these taxes should increase from today’s minimum level of a��302/1000 liters to the minimum level applied to petrol a��359/1000 liters in 2015, instead of 2012, as the Commission suggested.
Prolongation of the transitional period until 2016 for some of the new Member States.
The Parliament members approved an amendment to allow Latvia, Lithuania, Poland, Bulgaria and Romania dispose of an additional year – i.e., they should have prolongation of the transitional period until January 1st 2016 for gas oil used as motor fuel, to reach the objective of a��359/1000 liters. The Parliament Members propose this amendment, as 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.
Moreover, the Parliament opposed the Committee proposal to raise minimum excise duty on the two types of fuel to a��380/1000 liters in 2014. According to the Parliamentary Committee, Member States in which the excise duty rate on gas oil exceeded EUR 400 per 1 000 litres and the excise duty rate on unleaded petrol exceeded EUR 500 per 1 000 litres on 1 January 2008, must increase that rate no further until 1 January 2015.
In the sphere of taxation policy, the Role of the Parliament is consultative. After the Parliamentary vote, the final decision belongs to the Council.


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This post is published on 13.03.2008 at %I:%M %p in category European parliament, News. You can follow new comments through RSS 2.0 standart. You can leave a response (please read carefully what is written above the submit button, and do not resubmit your comment. because it is held for moderation.

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