The European Commission has welcomed the unanimous adoption by the EU's Council of Ministers of a Directive which widens the scope of the EU's minimum rate system, previously limited to mineral oils, to all energy products including coal, natural gas and electricity.

In particular, the Directive will reduce distortions of competition that currently exist between Member States as a result of divergent rates of tax; reduce distortions of competition between mineral oils and the other energy products that have not been subject to Community tax legislation up to now; increase the incentive to use energy more efficiently (so as to reduce dependency on imported energy and cut carbon dioxide emissions); and allow Member States to offer companies tax incentives in return for specific undertakings to reduce emissions.

The Commission will propose appropriate transitional arrangements for acceding Member States in the coming weeks.

The Directive will enter into force on 1st January 2004. - Read the Full release here

The complete directive can be found here

The definition of 'commercial', is at Article 7(3) and it covers goods vehicles over 7.5 tonnes and PCVs with over 8 seats, so the next step is to try to get an agreed interpretation from the Treasury.

MPs are to have the opportunity to show their support for measures to stop foreign vehicles entering the UK with huge quantities of cheap diesel.

An Early Day Motion (EDM) is to be tabled by Lib Dem MP Norman Baker at the request of industry campaigner Peter Carroll

Peter said, I am hoping that a large number of MPs will sign this EDM. It raises a genuine safety concern, but has the added feature that it addresses the issue of foreign hauliers coming into the UK with cheap fuel. Therefore, it is likely that MPs who support this issue may also support the general issue about unfair fuel duty and the damage it does to our industry.

Once we know who signs, I will follow them up to secure their support on the wider issue of unfair fuel duty. EDM 930 on fuel tourism can be viewed by clicking here

26th February 2010 - TransAction 2007

' The Essential User Rebate and EU Law - The Latest '

	Mr Norman Baker, Lewes, set out to ask the Chancellor of the Exchequer what assessment he has made of the merits of introducing an essential user rebate system for UK road hauliers; and what estimate he has made of the cost of such a rebate if by this means diesel costs the UK road hauliers were reduced in effect to the EU average.
	Response from Sarah McCarthy 16/12/2009 - HM Treasury. "EU law does not allow for a reduced fuel duty rate just for hauliers. A reduced rate for commercial vehicles would be allowable. However, this would have significant Exchequer costs, and in this time of fiscal consolidation, such expenditure and fiscal risk would not be appropriate. The difficulties of such a proposal (given that duty is charged on supplies) would lead to significant complexity and administrative costs for Government and industry, and risk fraud and evasion."

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