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Taxation taskforce update – March 2021

31/03/2021

The European Commission is currently reviewing the Energy Taxation Directive which was withdrawn by the European Commission in 2015 and will publish a revised Energy Taxation Directive, most likely after the Summer of 2021.    

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. 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. 

The EU over the past few years has also discussed ways to improve fairness and efficiency of the EU tax systems and challenges of taxing the digital economy as part of the ongoing international discussions at OECD level on a fair global digital tax system and the publishing of the European Commission’s digital tax package in March 2018.

With Member States being divided on the digital tax package, the European Commission has launched a consultation on digital levy from 18 January to 12 April 2021 with the aim of receiving input from all interested stakeholders. New legislation from the European Commission on a new digital levy is expected to be proposed no later than June 2021.