Italy referred to EU Court over fuel duty reductions

The European Commission has referred Italy to the Court of Justice over fuel duty reductions. It said the government failed to apply the national excise duty rate on petrol and […]

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By Priyanka Shrestha

The European Commission has referred Italy to the Court of Justice over fuel duty reductions.

It said the government failed to apply the national excise duty rate on petrol and diesel bought by motorists in the Friuli Venezia Giulia region.

Currently, the Italian authorities grant a price reduction on fuel to motorists who live in that region.

The Commission adds: “The Commission considers this to be a reduction of excise duties on diesel and petrol used as motor fuel, posing an obstacle to the proper functioning of the EU internal market and infringing EU rules.

“Substantial differences in national excise duty levels could impede the proper functioning of the internal market and lead to so-called ‘fuel tourism’.”

The Commission had formally requested Italy to amend its excise duty legislation for petrol and diesel in the region in December 2015.