| Author (Corporate) | Cardiff EDC (Compiler) |
|---|---|
| Publication Date | 2019-2021 |
| Content Type | Overview |
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Summary: Information Guide concerning Case C-63/19 from the Court of Justice of the European Union (CJEU), which related to the reduction in excise tax on fuel in Italy's northeast region of Friuli Venezia Giulia. Further information: Council Decision 96/273/EC authorised a reduction in the rate of excise duty on petrol purchased in the Italian Autonomous Region of Friuli Venezia Giulia (Regione autonoma Friuli Venezia Giulia). This was aimed at counteracting the practice of residents of refuelling their vehicles at a better price in Slovenia. After 2006, residents continued to benefit from a reduction in the price of fuel, on the basis of a regional law. This stipulates that service station operators apply reductions to the price of fuel for end consumers, which would later be refunded by the regional administration. The European Commission argues that such regional legislation results in an authorised reduction of the excise duties applicable to petrol and diesel sold to residents of the autonomous region. It thus constitutes an infringement of Council Directive 2003/96/EC. The Commission therefore brought an action against Italy before the CJEU in 2019 for failure to fulfil obligations and following an infringement procedure. Italy argues that it is impossible to establish an objective link between the contribution at issue and the excise duty component of the price of fuel at the service stations. On 14 January 2021, the Court of Justice decided to dismiss the Commission's action. It argues that the reduction on the price of fuel for the residents in Friuli Venezia Giulia does not, in itself, constitute an infringement of Council Directive 2003/96/EC, and that the Commission was not able to establish that Italy introduced a reduction in excise duty in the form of a refund of the amount of the tax. |
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| Subject Categories | Energy, Law, Taxation |
| Subject Tags | Energy Markets, Regional Dimension, Tax Systems |
| Keywords | CJEU Judgments, Excise Duties |
| International Organisations | European Union [EU] |
