Press Release: Energy taxation: Commission welcomes Council adoption of new EU rules

The European Commission has welcomed the unanimous adoption by the Environment Council in Luxembourg on 27 October 2003 of a Directive which widens the scope of the European Union's minimum rate system, previously limited to mineral oils, to all energy products including coal, natural gas and electricity. In particular, the Directive will reduce distortions of competition that currently exist between Member States as a result of divergent rates of tax; reduce distortions of competition between mineral oils and the other energy products that have not been subject to Community tax legislation up to now; increase the incentive to use energy more efficiently (so as to reduce dependency on imported energy and cut carbon dioxide emissions); and allow Member States to offer companies tax incentives in return for specific undertakings to reduce emissions.

The Commission will propose appropriate transitional arrangements for acceding Member States in the coming weeks. The Directive will enter into force on 1 January 2004.

• Primary Source

http://consilium.europa.eu/ueDocs/cms_Data/docs/pressdata/en/envir/77784.pdf http://consilium.europa.eu/ueDocs/cms_Data/docs/pressdata/en/envir/77784.pdf

http://ec.europa.eu/comm/taxation_customs/taxation/index_en.htm http://ec.europa.eu/comm/taxation_customs/taxation/index_en.htm

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