Proposal for a Council Decision authorising the United Kingdom to apply reduced levels of taxation to motor fuels consumed on the islands of the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde and the Isles of Scilly, in accordance with Article 19 of Directive 2003/96/EC

Taxation of energy products and electricity in the Union is governed by Council Directive 2003/96/EC (the 'Energy Taxation Directive'). Pursuant to Article 19(1) of the Directive, the Council, acting unanimously on a proposal from the Commission, may authorise any Member State to introduce further exemptions or reductions in the level of taxation for specific policy considerations.

The objective of this proposal is to allow the United Kingdom of Great Britain and Northern Ireland (UK) to introduce a reduced rate of excise duty on motor fuels (namely petrol and diesel) in all the islands of the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde (all off the coast of Scotland), and the Isles of Scilly (off the south west coast of England).

According to the information provided by the UK the price of fuel in the areas which are to benefit from the measure is on average £0.10 (approx. €0.11) more per litre than in other parts of the country. Higher prices in these areas are due to higher transport and distribution costs, and low population. The objective of the measure is to offer some mitigation against the high costs of motor fuels in the specified areas.

EUR-Lex: COM(2011)532: Follow the progress of this document through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2011:532:FIN

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