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The European Commission has presented its proposal to overhaul the rules on the taxation of energy products in the European Union.
The energy taxation directive already sets minimum rates for the taxation of energy products used as motor fuels and heating fuels, as well as electricity.
The revised version proposes splitting the minimum tax rate into two parts, one of which would be based on carbon dioxide emissions of the product and fixed at €20 per tonne of carbon dioxide.
The other part would be based on the actual energy that a product generates measured in gigajoules (GJ). The minimum tax rate would be fixed at €9.6/GJ for motor fuels and €0.15/GJ for heating fuels.
Member states would have the option to exempt energy consumed by households for heating, no matter what product was used.
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, says the EC.
The aim of the proposed revised directive is to provide a more coherent approach on energy taxation across the EU by preventing a patchwork of national policies and help to create a level playing field for industry across Europe.
With regard to the reduction of greenhouse gas emissions, the revised directive aims to complement the existing EU emission trading system by applying a carbon dioxide tax to sectors that are out of its scope: for example, transport, households, agriculture and small industries.
The proposal will be discussed by the European parliament and the council; it is expected to enter into force in 2013.
Long transitional periods for the full alignment of taxation of the energy content, until 2023, are designed to give industry time to adapt to the new structure.
