In October 2012 the European Commission launched a public consultation on 'Review of existing legislation on VAT reduced rates'. T&E has been campaigning to abolish the reduced rates for international passenger transport for years due to the harmful competitive distortions caused by those rates and the implicit subsidy it provides for passenger transport, especially in the aviation sector.
In this blog post, T&E director, Jos Dings, explains why raising fuel taxes does make sense even in times of economic crisis and dispels the myth according to which a lower taxation on fuel would benefit society at large.
The idea of making fuel tax in Europe relate to a fuel’s energy and carbon dioxide content is still struggling to get into the EU Energy Tax Directive. Last month EU finance ministers moved closer to approving a new structure for minimum tax rates for fuels, but most member states opposed any system that would force them to make diesel more expensive than petrol.
This blog is part 2 of an analysis of 20 years of CO2 emission trends in transport (1990-2010) as recently published by the European Environment Agency. The first blog focused on overall trends, and on aviation and shipping. In this post Jos Dings, T&E director, looks into individual countries’ performance, in particular when set next to their economic performance, and challenges the common belief that, after all, transport emissions are an almost inevitable by-product of economic growth.