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Marine Diesel Duty


Wedger
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nothing has actually happened new yet

 

EU commission is minded that there is no case for the continued derogation (well they would 'cos that's what they said last time and it's consistent with the EU regulations reguiring taxation on fuel at a minimum of .302E/l across Europe.

 

ie they have formally restated thier case.

 

remains with countries to respond (through EU ministers)

 

final situation will depend on political wrangling (about other things - this is so small it won't be the issue that matters in the negotiations)

 

2.2.2. Fuel used by private pleasure craft

 

According to Article 14(1)© of the Energy Tax Directive (which reproduces Article 8(1)© of the Mineral Oils Directive), Member States shall exempt from taxation energy products supplied for use as fuel for the purpose of navigation within Community waters (including fishing), other than private pleasure craft 18. Traditionally, Member States may extend such exemption to navigation in inland waterways. However, private pleasure craft is explicitly excluded from both provisions.

 

Annexes II and III contain in total 6 derogations authorising Member States for specific policy considerations to apply reduced rates of taxation or exemptions for fuel used in the navigation in private pleasure craft. The gradual phasing-out of 5 of these derogations was initiated by the Commission in its review of derogations undertaken in 2000.

 

Community policy considerations

 

The considerations set out above with regard to private pleasure air navigation apply equally to the analogous case of private pleasure craft. Consequently, the favourable tax treatment of fuel used for the activity in point, compared to fuel used for comparable (transport or leisure) activities, should not be renewed.

 

Arguments by Member States

 

Some Member States argue that the expiry of these derogations will generate the following negative consequences:

 

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