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Taxation Task Force update – June 2021

30/06/2021

The European Commission is currently reviewing the Energy Taxation Directive which was withdrawn by the European Commission in 2015 and will publish a revised Energy Taxation Directive, most likely later this month.

Related to UEIL’s objective to prevent the inclusion of lubes under EMCS, certain EU Member States are concerned about increased fraud with lubes across Europe and are once again increasing the pressure to include lubes under EMCS. UEIL will continue its outreach to EU Member States in the coming weeks to express its concern and will discuss with the European Commission the option of a definition of ‘light lubes’ that might be included under EMCS in the near future.

The European Commission has also decided to extend the quota on GP II of 400 tonnes annually until 30 June 2021 and to 150.000 tonnes in the second half of 2021. UEIL is lobbying for a higher quota as the demand is higher than the supply in Europe on GP II and for lubricant blenders it is very difficult to change from one producer to another.