WRITTEN QUESTION No. 3238/97 by Bill MILLER to the Commission. Excise Duty Harmonization
25. 5. 98 EN Official Journal of the European Communities C 158/69 (98/C 158/87) WRITTEN QUESTION E-3238/97 by Bill Miller (PSE) to the Commission (20 October 1997) Subject: Excise Duty Harmonization Can the Commission give an assurance that the issue of excise duty harmonization will not be allowed to drag on but will be accorded a measure of priority in order to allow growth in this vital sector? Answer given by Mr Monti on behalf of the Commission (18 November 1997) The Commission has already made numerous proposals in the excise field which would have produced the measure of harmonization necessary for a tax system in keeping with the needs of an internal market. However, where Council has adopted proposals, it has done so only after considerable amendment, which has meant that harmonization still falls well short of what is required to reap the full benefits of an internal market. Against that background, the Honourable Member will recognize that, while the harmonization of excise duties remains a priority area for the Commission, it can give no assurance that the current situation will be radically changed in the near future. (98/C 158/88) WRITTEN QUESTION E-3239/97 by Bill Miller (PSE) to the Commission (20 October 1997) Subject: Single Market As Commissioner Monti has indicated that Duty Free is to be abolished for inter EU travellers as of 1 July 1999 as part of the completion of the Single Market, when does he expect to see the elimination of tax discrimination in the area of Excise Duty which is also part of the completion of the Single Market? Answer given by Mr Monti on behalf of the Commission (18 November 1997) As regards duty free shopping, Council in fact took the decision to abolish it as long ago as 1991. At that time, however, it also granted a seven and a half year áwinding downí period, so as to permit a smooth transition for all concerned. As regards tax discrimination, it first has to be recognized that the term is subject to widely differing interpretations. In Community law its meaning is set out in Article 95 of the EC Treaty which prohibits a Member State from so taxing the products of other Member States as to put its own domestic products at an advantage. The Commission invariably takes action against any such tax discrimination which comes to its notice. Against that background, therefore, it is assumed that the Honourable Member is speaking of átax discriminationí in a broad sense to refer to the very wide differences in tax rates which continue to exist › quite legally › between Member States and different categories of product. This wide divergence is the result of the present system, based on minimum rates. The Commission is currently studying the issue of excisable goods in the field of alcolhol and tobacco products and will make a report, together with any appropriate proposals, to Council and the Parliament