91998E1089

WRITTEN QUESTION E-1089/98 by Graham Mather (PPE) to the Council (6 April 1998)

Subject: Abolition of Intra-EU duty free

At the meeting of the Transport Council on 17 March 1998, a document was circulated calling for an economic impact study on the effects of this abolition to be carried out. In the ensuing discussion, the majority of Transport Ministers who spoke were in favour of conducting such a study.

Will a similar discussion now be held by the Ecofin Council?

Answer (13/14 July 1998)

The decision to abolish the tax- and duty-free sales to intra-community travellers on 30 June 1999 was taken unanimously by the Economy and Finance (Ecofin) Council in 1991. Since then, the issue of whether the Council should nevertheless call on the Commission to conduct a study on the impact of the abolition has been discussed several times by the Council. The issue was lastly examined at the Ecofin Council meeting on 19 May 1998. It is clear from those discussions that there is no consensus among Finance Ministers for reopening the decision taken in 1991, and for calling on the Commission to produce such a study. The Commission is, however, prepared to clarify in a working document the instruments available to Member States for addressing the consequences of the abolition of intra-EU tax- and duty-free sales on 30 June 1999.