Proposal for a COUNCIL DECISION authorising Italy to apply or to continue to apply reductions in, or exemptions from, excise duties on certain mineral oils used for specific purposes, in accordance with the procedure provided for in Article 8(4) of Directive 92/81/EEC

(presented by the Commission)

EXPLANATORY MEMORANDUM

Under Article 8(4) of Council Directive 92/81/EEC on the harmonisation of the structures of excise duties on mineral oils [1], the Council, acting unanimously on a proposal from the Commission, may authorise any Member State to introduce exemptions from, or reductions in, excise duties on grounds of specific policy considerations.

[1] OJ L 316, 31.10.1992, p. 12 Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.1994, p. 46.

The Italian authorities have informed the Commission that they wish to apply reduced rates for LPG and heating oil distributed through networks, supplied as heating fuel to particularly disadvantaged geographical areas.

In accordance with the Directive, the other Member States have been informed of this request.

The Directive provides for the Commission to review such exemptions and reductions periodically. If the Commission considers that they may no longer be applied because they distort competition or the operation of the internal market or are incompatible with Community policy on protection of the environment, it is to present appropriate proposals to the Council. In any event, this derogation must be reviewed no later than 31 December 1999, when the authorisation granted by the Decision expires. The Council will review the situation on the basis of a Commission proposal and decide whether the authorisation should be withdrawn, amended or extended.

Proposal for a

COUNCIL DECISION

authorising Italy to apply or to continue to apply reductions in, or exemptions from, excise duties on certain mineral oils used for specific purposes, in accordance with the procedure provided for in Article 8(4) of Directive 92/81/EEC

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Directive 92/81/EEC of 19 October 1992 on the harmonisation of the structures of excise duties on mineral oils [2] and in particular Article 8(4),

[2] OJ L 316, 31.10.1992, p. 12 Directive as last amended by Directive 94/74/EC (OJ L 365, 31.12.1994, p. 46.

Having regard to the proposal from the Commission,

(1) Whereas, under Article 8(4) of Directive 92/81/EEC, the Council, acting unanimously on a proposal from the Commission, may authorise any Member State to introduce exemptions from, or reductions in, excise duties on mineral oils on grounds of specific policy considerations;

(2) Whereas the Italian authorities have notified the Commission that they wish to apply reduced rates for LPG and heating oil distributed through networks, supplied as heating fuel to particularly disadvantaged geographical areas;

(3) Whereas the other Member States have been informed thereof;

(4) Whereas the Commission and all the Member States accept that the application of reduced rates on excise duties on LPG and heating oil is justified on environmental and social policy grounds and that it will not give rise to distortions of competition or hinder the operation of the internal market;

(5) Whereas the Commission regularly reviews reductions and exemptions to check that they are compatible with the operation of the internal market or with Community policy on protection of the environment;

(6) Whereas Italy has requested authorisation to apply reduced rates on excise duties on LPG and heating oil from 1 January 1999; whereas the Council is to review its application on the basis of a report from the Commission no later than 31 December 1999, when the authorisation granted by this Decision expires,

HAS ADOPTED THIS DECISION:

Article 1

In accordance with Article 8(4) of Directive 92/81/EEC and notwithstanding the obligations laid down in Directive 92/82/EEC of 19 October 1992 on the approximation of the rates of excise duties on mineral oils, [3] and in particular the minimum rates laid down in Articles 5 and 7 thereof, Italy is hereby authorised to apply reduced rates of excise duty on LPG and heating oil distributed through networks as heating fuel to particularly disadvantaged geographical areas, until 31 December 1999.

[3] OJ L 316, 31.10.1992, p. 19.

Article 2

This Decision is addressed to Italy.

Done at Brussels,

For the Council

The President