The taxation of energy products is to a certain extent harmonized at EU level. Directive 2003/96/EC known as the Energy Tax Directive (ETD) refers. The current ETD provides for minimum excise rates of taxation for energy products based on the volume of a product released for consumption. Member States must respect the minimum rates and not tax products below those rates, but are free to set higher rates for individual fuels as they see fit. The current Irish national rates are generally above the EU minimum rates. The aim of the Commission’s proposal is to revise the ETD to bring it in line with wider EU climate change and energy policy to which all Members States have signed up. Ireland broadly supports the principle of the proposal and welcomes the introduction of a carbon tax element into the EU minimum rates, it will serve to lessen competitiveness concerns arising from Ireland being a lead country in the area of carbon taxes.
Discussions are ongoing under the Cypriot Presidency and, if the file is not concluded by the end of the year, Ireland will endeavour to progress the negotiations during its Presidency.