COMMISSION PROPOSES CUT IN EXCISE DUTY RATE FOR GERMAN AND BRITISH PUBLIC TRANSPORT FUEL.

On 24 April, the European Commission proposed authorising Germany to apply a reduced rate of excise duty to certain mineral oils used as fuel in local public transport vehicles. Germany justified this measure as part of its continuing environmental tax reform. The Commission accepted that this measure would not give rise to distortions of competition and submitted it to the Council of Ministers, demanding a unanimous vote (as a derogation to Directive 92/81/EEC). On 26 April, the Commission proposed authorising the United Kingdom to exempt from excise duty the water content of water/diesel emulsion (a substitute for diesel) as from 1 September 2000...