Commission proposals on exemptions for petroleum products

The European Commission has adopted a proposal for a Council Directive on the excise duties placed on petroleum products

In view of the expiration of Council Decision 99/880/EEC dealing with excise duties on mineral oils, the European Commission adopted a proposal for a Council Decision on the extension or abolition of exemptions on mineral oils used for specific functions.

The new proposals looks at the immediate or impending abolition of 25 derogations, a two year extension of the derogations regarding cuts in excise duties of diesel used by commercial vehicles and a five year extension on 14 other derogations. The background to the 15 November proposal is Directive 92/81/EEC dealing with the harmonization of the structures of excessive duties on mineral oil.

What the Commission hopes to see on one hand is to have those excise duty derogations abolished that are no longer justified and on the other hand to have a more regular examination of the remaining ones in place.

The Council needs to act unanimously on the Commission's proposal by the end of this year.

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