Coming back to the excise exemptions, the forthcoming ECOFIN Council is going to have to reach a unanimous decision on a new package of derogation applications, and it appears that they have all been approved apart from the two from the Netherlands.
In 2008, the estimated cost of excise tax exemption in France was €168 million, which is the second highest in the EU after Sweden (€224 million) [ 4].
The trade body also wants incentives for those considering buying electric cars second hand, such as lower vehicle excise duty, exemptions from parking and congestion charges and subsidies for installing domestic charging points.
As an alternative, Mr. Silvani said he would like to see a simplified income tax, a value-added tax with limited exemptions, excise taxes on goods like tobacco and alcohol, and a basic tax for low-income workers.
The proposal for a decision relates to authorizations for Member States to apply a number excise duty reductions and exemptions until 31 December 1998 and to the abolition of a number of other excise duty reductions and exemptions with effect from 31 December 1996.
All exemptions must be reviewed at regular intervals, and the PPE Group feels that it is vital to make this clear when all the current excise duty reductions or exemptions expire.
Small companies get all sorts of sops, especially exemption from paying excise taxes, which can make the difference between profit and loss.
In view of the many exemptions granted on excise duty, perhaps the Commission could finally give this proposal serious consideration.
They include a five-year holiday on profits tax, and exemption from import and excise duties and from some licensing requirements.
Moreover, exemption from a vehicle excise duty (a car tax based on carbon emissions) could be worth up to an additional $1,500 a year.
