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EC white paper will call for harmonisation of fuel tax

7th June 2001, Page 6
7th June 2001
Page 6
Page 6, 7th June 2001 — EC white paper will call for harmonisation of fuel tax
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• by Melanie Hammond European Commissioner Loyola de Palacio is championing a level playing field for hauliers in a new white paper in which she outlines proposals to bring fuel taxes across EU member states into line. However, the white paper, A Common European Transport Poky for the Next Ten Years, will also include less welcome measures, such as charging hauliers for road usage and distances travelled, The EC is expected to adopt the white paper in the next few weeks. It will then go before the European Council and European Parliament for further debate and a "rapporteur" (MEP) will be appointed to take it further. De Palacio (pictured) says: "I fully agree with the road transport sector that in some cases it [fuel duty] is too high," However, de Palacio also wants to introduce the "user-pays" principle as set out in the Costa Report earlier this year (CM 25-31 Jan). This would raise the spectre of taxes linked to distance travelled, size of vehicle and emission levels. "Such a harmonised system should remove distortions in competition between the different means of transport, as well as reducing congestion and pollution," says Palacio.

But Palacio's proposal could fall at the first fence if Fritz Bolkestein, the Commissioner for Internal Markets and Taxation issues, opposes it.

A spokeswoman points out that excise duty does not fall under de Palacio's remit; she could not understand why taxes are mentioned in a white paper on transport. Conservative MEP Phillip Bradbourn warns that harmonisation would force up taxes. But RHA chief executive Roger King comments: "If this means a single harmonised tax structure, and if it will level the ground between us and Europe, then it's a step in the right direction."

NI As CM went to press Chancellor Gordon Brown was expected to block attempts to raise the minimum levels of fuel duty at a meeting of Economic and Finance Ministers (Ecofin) in Luxembourg.

This minimum threshold was set when the UK held the EU presidency in 1992. But some member states claim that the real value of fuel duty has fallen by about 20% over the past nine years and are now keen to increase it. This would have no impact in the UK, where fuel taxes are the highest in Europe, but could almost double the duty in Portugal and Greece.


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