Energy poverty and taxes on heating oil
| 3 March 2016 |
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| Question for written answer to the Commission Rule 130 Notis Marias (ECR) |
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A recent survey of energy poverty by the European Parliament estimates that the percentage of energy poverty in Greece stands at 36%. Although there is a heating subsidy, tens of thousands of households are unable to buy heating oil.
Excise duty on heating oil in the winter was EUR 21 per 1 000 litres in 2010, climbed to EUR 60 in 2011, then to EUR 330, and is now EUR 230 per 1 000 litres, with VAT at 23%.
Can the Commission please state what stance it will take as a member of the troika, should the Greek Government, in order to reduce energy poverty, decide to launch the following actions for domestic heating oil for non-business use:
| 1. | in accordance with Article 9 of Directive 2003/96/EC, a reduction in the excise duty from EUR 230 per 1 000 litres to EUR 21 per 1 000 litres or any other intermediate amount as is the case in other EU Member States? |
| 2. | in accordance with Article 102 of Directive 2006/112/EC, a reduction of the VAT from 23% to 5%, as is the case in other EU Member States? |
Source: European Parliament
| Answer given by Mr Moscovici on behalf of the Commission | ||||
| Both the excise duties and the VAT rates remain the responsibility of the EU Member States, which however have to comply with the minimum rates laid down in the EU directives. In the case of Greece, these issues are closely related to the policy conditions that the Greek Government has signed in August 2015 with a view to receive financial assistance by the European Stability Mechanism (ESM). In the memorandum of understanding (MoU) there is a commitment by the authorities to streamline the VAT system and to review energy taxation. These are expected to reduce current distortions and promote energy efficiency and a shift towards less polluting energy sources. It is expected that in this effort measures are taken to mitigate any impact on the most vulnerable groups.(1). The Commission will work closely with the authorities to ensure a proper implementation of these commitments under the memorandum of understanding.
The effectiveness of the existing subsidy scheme on heating oil in terms of providing support to low income households is being assessed by the World Bank as part of a review of the social welfare system; this could lead to recommendations that ensure it is better targeted to low income households.
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