Taxation: Commission refers Italy to the Court of Justice over excise duty reductions for petrol and diesel

Currently, the Italian authorities grant a price reduction on motor fuel to motorists that reside in the Friuli Venezia Giulia region. The Commission considers this to be a reduction of excise duties on diesel and petrol used as motor fuel, posing an obstacle to the proper functioning of the EU internal market and infringing EU rules.

EU rules on energy taxation (the Energy Taxation Directive, Council Directive 2003/96/EC) provide for minimum rates of taxation on energy products. Substantial differences in national excise duty levels could impede the proper functioning of the internal market and lead to so-called 'fuel tourism'. Member States are only allowed to apply differentiated national excise duty rates to the same products when explicitly authorised by the Energy Taxation Directive. Regional reductions, such as that granted by Italy, are not allowed by the Energy Taxation Directive and are in breach of EU law.

Background

The European Commission formally requested Italy to amend its excise duty legislation for petrol and diesel in the Friuli Venezia Giulia region on 11 December 2015. Since then, Italy has not complied with the reasoned opinion sent by the Commission in December 2015.

For More Information

IP/17/1055

 

Press contacts:

General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email