No more advantages for Diesel. The European Commission is considering eliminating the tax advantage from which the diesel compared to gasoline. The proposal could also bring further increases of diesel, was put forward by the European Commission with the aim of fighting the climate changes.
The debate held in the halls of the European Commission seems to have come to an end. The majority of MEPs spoke out against the principle of fiscal neutrality. The non-binding position adopted by the European Parliament saw 374 votes in favor, 217 against and 73 abstentions. Now it will be up to the Council of Ministers to decide unanimously whether to implement the changes.
This maneuver would see an increase in the price of diesel even in those countries where it benefits from tax advantages over petrol. The European Commission has made a clear proposal to counter the climate changes: taxes on energy products (electricity, fuel…) must be calculated based on the CO2 emissions and the energy potential of the product.
With such a maneuver, countries would be forced to exploit more sources of renewable energy in order to help the EU achieve the objectives set to carry out the fight against climate changes.
According to MEPs, Member States could apply the new proposal in all sectors except agriculture and forestry, with a reduced or zero level of taxation. Such exceptions would be linked to the sectors' unique advantages in terms of energy efficiency. To date, agricultural diesel costs approximately € 1.10 farms they use over 3.00 liters of fuel per day, this tax will further put the agricultural sector to court.