The EC wants to raise taxes on diesel

[jean63]

The Tribune.fr - 13/03/07 at 18:36 -
fuels
European Commission wants to increase diesel taxes
Brussels wants to fight against "tourism at the pump" which led many truckers to seek, in the Union, the cheapest fuels.Stop the trucks! The European Commission proposed this Tuesday to raise in the coming years the minimum taxes in the EU on diesel, in order to fight against "tourism at the pump". This "tourism" is characterized by very specific behaviors of the truck drivers who do not hesitate to sometimes make great detours compared to their initial journey to benefit from the best prices at the pump practiced in certain countries.
France, whose excise rate is not the lowest but not the highest either, thus collects road traffic significantly higher than that which it should experience, complain many NGOs and ecological associations. In fact, this "fuel tourism" results in saturation of its main roads and obviously an increase in carbon dioxide (CO2) emissions on its territory.
Since 2004, the minimum rate of tax on diesel fuel used for commercial purposes has been 302 euros per 1.000 liters and it should increase to 330 euros in 2010. The Commission proposes to raise it to 359 euros in 2012, then to bring it to 380 euros in 2014. This increase will ultimately lower taxes on diesel fuel to that of unleaded gasoline.
Nine member states, which benefit from derogations linked to their history (Bulgaria, Luxembourg, Baltic states, Spain, Greece, Cyprus, Romania), currently apply a lower rate, between 220 and 294 euros, which allows them to sell diesel to prices significantly lower than other countries. They would benefit from one to three additional years to align with the European minimum. Five countries have, on the contrary, a rate higher than 400 euros, like Germany at 470 euros and especially the United Kingdom at 693 euros.

The consequences of these differences mean that the Portuguese fill up in Spain and Luxembourg is full of petrol pumps. These differences can represent "up to 20% of the price of a full tank over 1.000 km", underlines the Commission. This makes profitable not only the "fuel detours" but also all the journeys.

Moreover, while diesel represents between 20 and 30% of a carrier's expenditure, these differences create "distortions of competition" underlines the Commission, which also points to the "negative environmental consequences" of this tourism at the pump, so it even continues to denounce the constant increase in CO2 emissions from road transport, which represent 25% of EU emissions. Finally, this practice has budgetary consequences. In Germany, carriers easily refuel in border countries and losses in tax revenue are estimated at 2 billion euros per year.

The Commission's proposal is far from being adopted, however, since it will require the unanimity of the XNUMX Member States, like all questions of tax harmonization. Only four states (France, Belgium, Italy, Spain) apply a differentiated rate between professional and non-professional diesel: the price is the same at the pump, but the carriers are reimbursed afterwards.

To reduce discrepancies, the countries with the highest rates on professional diesel are given the opportunity to reduce them, provided that the overall tax burden remains the same through the introduction of road charges, as in Germany.
Remy Janin

[ThierrySan]

I see, once again, that Europe knows how to focus only on what interests it! It's good for pollution, but what interests them the most is essentially tax revenue, especially for Germany ... I also see, that the latter has far more weight on Europe than France ...

The most developed countries in Europe have been talking about social dumping in terms of work for years. Where is Europe to standardize the hourly work rate in its countries ?! Once again, it is clear that the concerns of the countries diverge with those of the populations, but converge with the multinationals ...

[bham]

I see, once again, that Europe knows how to focus only on what interests it! It's good for pollution, but what interests them the most is essentially tax revenue, especially for Germany ... I also see, that the latter has far more weight on Europe than France ...

This is clear because rather than aligning prices up, what prevents them from aligning down ??? Because prices are everywhere as high or as low in both cases leads to a lack of interest in tourism at the pump.

[jean63]

I see, once again, that Europe knows how to focus only on what interests it! It's good for pollution, but what interests them the most is essentially tax revenue, especially for Germany ... I also see, that the latter has far more weight on Europe than France ...

This is clear because rather than aligning prices up, what prevents them from aligning down ??? Because prices are everywhere as high or as low in both cases leads to a lack of interest in tourism at the pump.

As they are 27 and there must be "unanimity", there is little chance that the measure will be taken, which would perhaps not have been the case if France had voted FOR the European Constitution ??

The Commission's proposal is far from being adopted, however, since it will require the unanimity of the XNUMX Member States, like all questions of tax harmonization.

Am I wrong or not?