TAXATION: EUROGAS ATTACKS UNFAIR DISCRIMINATION IN ENERGY DUTIES.

Eurogas, which represents the European gas industry, has hit out at the political agreement reached by the EU with much effort on the energy taxation Directive (see European Report 2761, same section). Eurogas believes the future Directive quite simply does not keep its promises, as the minimum rates on offer are unrelated to the environmental impact of energy sources, in terms of CO2, SO2 and NOx. A comparison between the minimum rates proposed in the future Directive and CO2 emission/energy unit levels shows that natural gas is to be taxed at least as much as coal and coke, even, though coal (hard coal and lignite) are more pollutant, Eurogas claims. If a zero rates is applied as planned to LPG, the discrimination will be even greater on the heating fuel market, says Eurogas.

The association also questions the minimum taxation system. If the...