Considerations on COM(2021)485 - Authorisation of Italy to apply reduced rates of excise duty to gas oil used for heating purposes and to electricity supplied in the municipality of Campione d'Italia - Main contents
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| dossier | COM(2021)485 - Authorisation of Italy to apply reduced rates of excise duty to gas oil used for heating purposes and to electricity ... |
|---|---|
| document | COM(2021)485 |
| date | August 20, 2021 |
(2) The municipality of Campione d'Italia constitutes an exclave of Italy in Switzerland with a very limited geographical scope and a small population. The area is mountainous, which limits urban development, industrial activities and its overall accessibility. Given its geographical location, its lack of access to the natural gas network and its severe climatic conditions, the costs of supplying energy products to Campione d’Italia are high, whether they are supplied from Switzerland or from Italy. Moreover, the entry of Campione d’Italia into the Union customs territory on 1 January 2020 led to an increase in the energy costs for households and businesses.
(3) The excise duty differentiation aims to mitigate the high energy costs.
(4) The requested measure has been reviewed by the Commission and been found not to distort competition or hinder the proper functioning of the internal market and it cannot be considered incompatible with the Union’s 's policy on the environment, energy and transport. The reduced excise duty rates for both gas oil and electricity would remain equal to or higher than the minimum levels of taxation set out in Directive 2003/96/EC and would partially offset the increased energy costs in the municipality. The tax reduction is not cumulative with any other sorts of tax reduction.
(5) Italy should therefore be authorised to apply, in the municipality of Campione d'Italia, reduced taxation rates to electricity and gas oil used for heating purposes.
(6) Each authorisation granted under Article 19(2) of Directive 2003/96/EC is to be strictly limited in time. In order to provide the municipality of Campione d'Italia with a sufficient degree of certainty, the authorisation should be granted for a period of six years. However, in order not to undermine future general developments of the existing legal framework, it is appropriate to provide that, should the Council, acting on the basis of Article 113 of the Treaty on the Functioning of the European Union, introduce a modified general system for the taxation of energy products to which this authorisation would not be adapted, this authorisation should cease to apply on the day on which those general rules become applicable.
(7) This Decision is without prejudice to the application of Union rules regarding State aid.