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Diesel rebate: French lose—Dutch win

2nd October 1997
Page 6
Page 6, 2nd October 1997 — Diesel rebate: French lose—Dutch win
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Which of the following most accurately describes the problem?

• French hauliers have seen their hopes of subsidised "professional" diesel dwindle since a left-wing coalition took power in France, but Dutch hauliers have won a rebate after their government increased duty diesel.

France's new "green'' environment minister, Dominique Voynet, is opposed to reducing fuel taxes, but French hauliers are hoping the new communist transport minister will he more open to their demands for a discounted diesel.

Cheap professional diesel in France would require the authorisation of all other EU States. The hauliers hope France will support a modification of EU fuel tax rules that would scrap the need to ask for permission to differentiate taxs on diesel. Dutch hauliers are luckier: their government increased excise duties on diesel by the equivalent of 2p/lit. But since this summer operators have been granted refunds to neutralise the effects of the tax hike.

However, to continue using this system, the Dutch will have to win approval from the EU Council of Ministers by proving that that they are not discriminating against hauliers of other nationalities.

An EU source says: "In theory, they must offer the same refunds to British, French or Belgian hauliers."


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