Tax plan targets fuel-tank tourism

The Commission will publish a proposal next Thursday (15 February) to raise minimum excise rates for diesel.

The proposal is prompted by Commission concerns that thousands of EU drivers are driving to neighbouring countries to take advantage of cheap diesel.

This kind of "tank tourism" means member states lose billions in tax revenue every year, as well as increasing transport pollution, according to Commission impact assessments.

The proposal is expected to suggest raising the minimum duty from €302 per thousand litres today to €359 in 2012. Portugal and Greece are among countries that would be affected by any change.

Several member states already impose an excise duty well above the Commission’s proposed level, with the UK in the lead. British excise rates stand at €693 per thousand litres.

The proposed change is likely to face opposition from national governments. Changes to tax rules would require unanimous support from all the 27 member states.

A Commission official said increasing national concerns over energy use and climate change might encourage governments to accept this tax hike.

The proposal comes ahead of a wholesale review of the taxation of energy products and electricity directive, due to start this spring.

The Commission will publish a proposal next Thursday (15 February) to raise minimum excise rates for diesel.