Press Release: Excise duties: Commission decides to send reasoned opinion to Germany on mineral oil exemption

The European Commission has decided to send Germany a reasoned opinion (second stage of the formal infringement procedure under Article 226 of the EC Treaty) concerning an exemption from excise duty for certain mineral oil used for heating. The Commission considers the exemption to be incompatible with the relevant EU Directive which, in principle, requires excise duty to be levied on all mineral oils used for heating purposes (or motor fuel). In the absence of a satisfactory amendment to the German tax rules within 2 months of receipt of the reasoned opinion, the Commission may refer the matter to the Court of Justice.