IntroductionThe Energy Tax Directive proposal that the EU Commission presented last year was voted down on April 19 as the Parliament was not ready to increase taxes in the current economical climate. According to the EC proposal, the motor fuel tax shall be split between a CO2 based and an energy based component by introducing a minimum flat tax for all fuels to be implemented stepwise until 2018, offering an option to the Member States to postpone any tax increase to 2023. The EP report recognized the need for consistency with regards to the rates of taxation, but suggested a highet tax on diesel and supportive measures for CNG and biogas. The proposed new tax system would automatically redistribute the relative advantages of various fuels in terms of CO2 emissions.
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