| Author (Person) | Chaffin, Joshua |
|---|---|
| Series Title | Financial Times |
| Series Details | 14.4.11 |
| Publication Date | 14/04/2011 |
| Content Type | News |
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The European Commission presented a proposal to overhaul the outdated rules on the taxation of energy products in the European Union on the 13 April 2011. The new rules aim to restructure the way energy products are taxed to remove current imbalances and take into account both their CO2 emissions and energy content. The Commission wants to promote energy efficiency and consumption of more environmentally friendly products and to avoid distortions of competition in the Single Market. The proposal will help Member States to redesign their overall tax structures in a way that contributes to growth and employment by shifting taxation from labour to consumption. The revised Directive would enter into force as of 2013. Long transitional periods for the full alignment of taxation of the energy content, until 2023, will leave time for industry to adapt to the new taxation structure. The proposal will now be discussed by the European Parliament and the Council and is expected to enter into force as of 2013. It foresees, where appropriate, a gradual introduction of the new taxation system. Environmental groups welcomed the proposals, but European carmakers, who have invested heavily in diesel technology over the years, are opposed as are some Member States. The proposal will need unanimous support from the Member States. The proposals could make diesel more expensive than gasoline. The move could damage Europe's highly-developed market for diesel cars. |
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| Subject Categories | Business and Industry, Mobility and Transport, Taxation |
| Countries / Regions | Europe |
