|
The Council Directive 2003/96/EC of 27 October 2003 "restructuring the Community framework for the taxation of energy products and electricity" [1] authorizes Member States to apply "total or partial exemptions or reductions in the level of taxation to taxable products used under fiscal control in the field of pilot projects for the technological development of more environmentally-friendly products or in relation to fuels from renewable resources". Its aim is therefore to improve the operation of the internal market by reducing distortions of competition between mineral oils and other energy products. In line with the Community's objectives and the Kyoto Protocol, it encourages more efficient use of energy in order to reduce the dependence on imported energy products and limit greenhouse gas emissions.
Member States may apply total or partial exemptions or reductions in the level of taxation to, inter alia:
-
energy products used […] in the domain of pilot projects for the technological development of more environmentally-friendly products or in relation to fuels from renewable sources;
-
biofuels (as defined in the European Directive 2003/30/EC);
-
forms of energy which are of solar, wind, tidal or geothermal origin, or from biomass or waste;
-
energy products and electricity used for the carriage of goods and passengers by rail, metro, tram and trolley bus;
-
energy products supplied for use as fuel for navigation on inland waterways (including fishing) other than in private pleasure craft, and electricity produced on board a craft;
-
natural gas and LPG used as propellants.
The discretion being left to Member States to apply the most suitable tax levels, the practical implementation of this Directive gives rise to varying conditions for the development of biofuels depending on the countries.
The European Directive 2003/96/EC is successively amended by European Directives 2004/74/EC and 2004/75/EC.
|
