Commission revives talks over EU-wide tax on pesticides

Date: 03/06/1999

By Renée Cordes

THE European Commission has reopened discussions with governments on whether an EU-wide pesticide tax to deter farmers from spraying too many chemicals on crops is feasible.

Officials in the Commission's Directorate-General for the environment (DGXI) have been testing the water by inviting experts from member states to discuss their experiences at national level and consider whether the Commission should draw up legislative proposals.

Although no conclusions have been reached, Commission officials say there is growing impetus for the EU to take action as an increasing number of countries consider introducing national levies.

" There is a certain feeling that under the current policy it is difficult to influence how the chemicals are used and how to decrease the use of dangerous ones," said one.

He added that the institution planned to draw up a report exploring various policy options and might include proposals for an EU-wide tax within it, although this would probably be left to the new Commission team which takes office this autumn.

A paper prepared by outside consultants for the Commission earlier this year concluded that an EU-wide tax on all pesticides based on the value of the chemicals would be technically workable.

However, it warned that it would be difficult to overcome strong opposition from the agrochemical industry and farmers, and to win the support of governments which are undecided.

The report was commissioned after national experts failed to reach a decision last year on whether harmonised value added tax payments would be the best way to curb the environmental damage from chemicals used to destroy weeds or other pests.

Member states such as Denmark and Sweden, which have already introduced their own taxes, have been stepping up pressure on other countries and the EU as a whole to follow suit. The Netherlands, the UK and France are all considering similar measures, prompting industry fears of escalating costs.

Although the use of pesticides has declined in the EU over the past ten years, it is still a major money-spinner for chemical giants such as Novartis, Zeneca, Monsanto and DuPont.

The threat of pesticide levies across the Union has prompted fierce protests from the industry, which argues that allowing the sector to police itself would be a better way to combat the problem of pollution.

" We do not support taxes," said Nathalie Watelet, manager of agricultural and environmental affairs at the European Crop Protection Association. "We believe that training, a code of best practices and local action when there is a problem is much more efficient."