TAXATION: PROPOSED EXCISE DUTY DEROGATION FOR DANISH HEATING OIL.
The European Commission proposed on January 7 that Denmark should be authorised to apply a reduced excise duty (22%) to heavy fuel oil and heating oil used by firms that pledge to improve their energy efficiency. The Commission proposes that Denmark should be allowed to reduce excise duties by a maximum of Euro 0.0095/kg on heavy fuel oil and Euro 0.008/litre on heating oil for a period of 6 years (possibly renewable) from the date on which the Council approves the measures, except in respect of the parts of the plan concerning the farming industry, which are being studied further under the State Aid Code for the agricultural sector. The Commission considers that a differentiation of excise duties falls within the framework of environmental protection policy.This derogation aims to partially compensate for the fact that taxes on heating are much higher (50%) than initially anticipated when Denmark adopted its package of...
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