CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Committee Calls For Common EU Energy Tax System

Committee Calls For Common EU Energy Tax System

by Ulrika Lomas, Tax-News.com, Brussels

21 February 2013


In its adopted opinion on the internal energy market, the European Economic and Social Committee (EESC) said that, if the European Union (EU) is to meet its energy and climate policy goals, it will need to adopt a common energy tax regime.

In the EESC’s opinion, the member states of the EU must "rethink energy taxation" with a view to making it "uniform and smarter across Europe." It suggested creating a common tax framework which would link the tax rate to the energy source and factor in carbon emissions.

“The burden of fees and value added tax for electricity ranges from 4.7% in the United Kingdom to 45.6% in Denmark, with no heed to the energy content of electricity produced,” said Pierre-Jean Coulon, rapporteur for the opinion.

According to the EESC, local and national taxation results in price distortions that heavily penalize consumers and energy-intensive industries. While the European Commission still has a plan to complete the internal energy market by 2014, the EESC deplored the fact that the present gas and electricity markets are still “European in name only,” and, in practice, are “more of a hotchpotch of national practices, markets and providers.”

Coulon also disapproved of the effect that price regulation is having at national level on energy consumption and business returns. In his view: "The administered energy prices do not provide the price signals necessary for consumers to cut down on energy use, nor do they cover the real cost of energy production and supply."

TAGS: environment | tax | European Commission | value added tax (VAT) | energy | fees | European Union (EU) | Europe

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »