WRITTEN QUESTION E-1996/99 by Michl Ebner (PPE-DE) to the Commission. Abolition of tax privileges for diplomats.
1. 8. 2000 EN Official Journal of the European Communities C 219 E/63 The Committee on Commerce and Distribution set up by the Commission, which consists of 65 entrepre- neurs from all branches and sectors of trade ü including representatives from the wholesale industry ü advises the Commission on matters relating to commerce. The Committee has discussed electronic commerce, competition and the consequences of the introduction of the euro several times during the last few months and provided the Commission with important information. The Commission has launched various initiatives to support SMEs in particular, such as SLIM (simpler legislation for the internal market) (5) and BEST (Business Environment Simplification Task Force) which aim to create an optimal administrative environment for their activities. This should help businesses, especially SMEs, to operate more efficiently with fewer costs. See the conclusions of the Council meeting (industry) of 29. 4. 1999. (1) COM(1999) 6 final. (2) (3) OJ C 372, 9. 12. 1997. (4) Draft under discussion. OJ C 270, 24. 9. 1999. (5) COM(97) 618 final, 21. 11. 1997. (2000/C 219 E/074) WRITTEN QUESTION E-1996/99 by Michl Ebner (PPE-DE) to the Commission (9 November 1999) Subject: Abolition of tax privileges for diplomats In the course of the Commissionís renewal it was decided last month that in future new Commissioners would no longer enjoy the tax privileges so long accorded to them. Following this notable and praiseworthy reform, could the Comission indicate whether in the near future this arrangement will be extended to the entire diplomatic corps within the European Union? Answer given by Mr Bolkestein on behalf of the Commission (22 December 1999) Tax and duty free privileges for diplomats are based on long-standing reciprocal traditions that have been codified in general terms in the Vienna Convention from 1961. They are also explicitly provided in Community legislation (as to VAT, the exemptions are laid down in Article 15(10) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes (1), while similar exemptions from excise duties are provided by Article 23(1) of Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products (2)). They are subject to the conditions and limitations fixed by the Member States. At its meeting on 29 September 1999, the Commission decided that all of its members would voluntarily renounce several of the special privileges traditionally granted to them by the Belgian authorities in their application of the 1961 Vienna Convention on diplomatic relations. When it comes to expenditures of a private nature, members of to claim exemption from VAT and excise duties on wine and spirits, cigarettes and petrol or to purchase, free of VAT, a wide variety of items for personal use. therefore no longer exercise their right the Commission will In general, one could argue that in an internal market, privileges of that kind for diplomats of one Member State posted in another Member State are no longer justified and should be abolished. This would however require an amendment of current Community legislation and, at this juncture, a unanimous vote of the Council on a proposal from the Commission. This is a matter that needs careful examination as it interferes with Member Statesí application of the Vienna Convention. As a consequence, the Commission has no intention to submit any proposals on this issue in the near future. (1) OJ L 145, 13. 6. 1977. (2) OJ L 76, 23. 3. 1992