BETA


2017/0127(CNS) Reduced rate of certain indirect taxes on "traditional" rum produced in Guadeloupe, French Guiana, Martinique and Réunion

Progress: Awaiting final decision

RoleCommitteeRapporteurShadows
Lead REGI MIHAYLOVA Iskra (icon: ALDE ALDE) PONGA Maurice (icon: PPE PPE), MANSCOUR Louis-Joseph (icon: S&D S&D), FLACK John (icon: ECR ECR), OMARJEE Younous (icon: GUE/NGL GUE/NGL), ROPĖ Bronis (icon: Verts/ALE Verts/ALE), D'AMATO Rosa (icon: EFDD EFDD)
Lead committee dossier:
Legal Basis:
TFEU 349-p1sub1-as1

Events

2017/10/24
   EP - Results of vote in Parliament
2017/10/24
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 563 votes to 23, with 78 abstentions, in the framework of a special legislative procedure (Parliament’s consultation), a legislative resolution on the proposal for a Council decision amending Council Decision No 189/2014/EU authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and repealing Decision No 2007/659/EC.

Following the recommendation of its Committee on Regional Development, the European Parliament approved without amendment the Commission proposal which provides that, for the period from 1 January 2016 to 31 December 2020, the reduced rates of excise duty on rum are limited to an annual quota of 144 000 hectoliters of pure alcohol (instead of 120 000 hap).

Documents
2017/10/16
   EP - Committee report tabled for plenary, 1st reading/single reading
Details

The Committee on Regional Development adopted, in the framework of a special legislative procedure (Parliament’s consultation), the report by Iskra MIHAYLOVA (ALDE, BG) on the proposal for a Council decision amending Council Decision No 189/2014/EU authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and repealing Decision No 2007/659/EC.

The committee recommended the European Parliament to approve the Commission proposal without making any amendments.

As the explanatory memorandum accompanying the report pointed out, traditional rum from France’s outermost regions is subject to special excise duty arrangements on the French mainland market. Council Decision No 2002/166/EC fixed the volume of rum eligible for special excise duty.

In 2016, rum production in the French outermost regions exceeded the quota eligible for special tax treatment by about one-fifth. Unless the quota for 2016 is changed retroactively, the State aid effect of these arrangements will be cancelled-out and the producers may suffer economic harm.

On 22 September 2016, the French authorities asked the Commission to present a draft technical adaptation to the most recent Council Decision Council Decision No 189/2014/EU, increasing the annual quota from 120 000 to 144 000 hap (hectolitres of pure alcohol) for the period between 1 January 2016 and 31 December 2020.

The Rapporteur welcomed the Commission proposal adopted on 9 June 2017.

Documents
2017/10/09
   EP - Vote in committee, 1st reading/single reading
2017/09/13
   EP - Committee draft report
Documents
2017/07/06
   EP - Committee referral announced in Parliament, 1st reading/single reading
2017/06/20
   EP - Responsible Committee
2017/06/09
   EC - Legislative proposal published
Details

PURPOSE: to authorise France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

BACKGROUND: traditional rum from France’s outermost regions has been subject to special excise duty arrangements on the French mainland market since 1923. Since the creation of the internal market and the harmonisation of excise duty in Europe, these special excise duty arrangements have been extended with EU approval.

Council Decision No 189/2014/EU authorised France to extend the application on the French mainland, to ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion, of a rate of excise duty lower than the full rate for alcohol set by Council Directive 92/84/EEC and to apply a rate of the levy known in French as ‘cotisation sur les boissons alcooliques’ (VSS) lower than the full rate applicable under French national legislation to ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion.

According to Council Decision No 189/2014/EU, the reduced rates of excise duty and of VSS applicable to ‘traditional’ rum shall be confined to an annual quota of 120 000 hectolitres of pure alcohol (‘hap’) .

On 22 September 2016, the French authorities asked the Commission to present a draft technical adaptation of Council Decision No 189/2014/EU increasing the annual quota from 120 000 to 144 000 hap.

The Commission emphasises that the urgency of the increase is evident:

the quota of 120 000 hap for 2016 was used before the end of 2016; without a retroactive increase with effect from 1 January 2016, producers will suffer significant – and likely irreparable – harm; not increasing the quota would weaken rum producers in France’s outermost regions in terms of their commercial strategies for 2017; exports of traditional rum to the EU from Guadeloupe, French Guiana, Martinique and Réunion has drastically fallen since 2012.

Therefore, the annual quota shall be increased from 120 000 hap to 144 000 hap.

CONTENT: the proposal amending Council Decision No 189/2014/EU provides that the reduced rates of excise duty and of VSS and applicable to the rum shall be confined, for the period between 1 January 2016 and 31 December 2020 , to an annual quota of 144 000 hectolitres of pure alcohol .

The increase in the quota is a retroactive and limited adaptation bringing it up to a level consistent with the annual growth rates already envisaged by the Council. The other parameters of Decision No 189/2014/EU are unchanged.

An independent economic analysis carried out by the Commission concluded that French imports of traditional rum from Guadeloupe, French Guiana, Martinique and Réunion represented only a small proportion of total alcohol consumption in France. Therefore, the presence of a reduced rate for rum was not likely to create distortions of competition on the French rum market.

Documents

Votes

A8-0304/2017 - Iskra Mihaylova - Vote unique 24/10/2017 12:20:50.000

2017/10/24 Outcome: +: 563, 0: 78, -: 23
DE FR IT ES RO PL PT CZ HU AT NL GB BE BG EL HR IE FI DK SK LT LU LV SI MT EE CY SE
Total
85
65
62
47
29
48
20
19
18
17
24
63
19
16
19
11
9
11
11
10
8
6
7
6
6
5
5
18
icon: PPE PPE
195

Finland PPE

For (1)

1

Denmark PPE

For (1)

1

Lithuania PPE

1

Luxembourg PPE

3

Slovenia PPE

3

Estonia PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
176

Netherlands S&D

3

Greece S&D

2

Croatia S&D

2

Ireland S&D

For (1)

1

Luxembourg S&D

For (1)

1

Latvia S&D

1

Slovenia S&D

For (1)

1

Malta S&D

3

Estonia S&D

For (1)

1

Cyprus S&D

2
icon: ALDE ALDE
56

Germany ALDE

2

Romania ALDE

3

Portugal ALDE

1

Austria ALDE

For (1)

1

United Kingdom ALDE

1

Croatia ALDE

2

Ireland ALDE

For (1)

1

Denmark ALDE

2
2

Luxembourg ALDE

For (1)

1

Latvia ALDE

1

Slovenia ALDE

For (1)

1

Estonia ALDE

2
icon: Verts/ALE Verts/ALE
48

Italy Verts/ALE

For (1)

1

Hungary Verts/ALE

For (1)

1

Austria Verts/ALE

3

Netherlands Verts/ALE

2

Belgium Verts/ALE

2

Croatia Verts/ALE

For (1)

1

Finland Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Slovenia Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1

Sweden Verts/ALE

3
icon: GUE/NGL GUE/NGL
44

Italy GUE/NGL

2

Portugal GUE/NGL

3

Netherlands GUE/NGL

Against (1)

3

Ireland GUE/NGL

3

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

For (1)

1

Cyprus GUE/NGL

2

Sweden GUE/NGL

For (1)

1
icon: ENF ENF
30

Italy ENF

Abstain (1)

4

Romania ENF

1

Poland ENF

For (1)

1

Austria ENF

3

Netherlands ENF

4

Belgium ENF

For (1)

1
icon: EFDD EFDD
35

Poland EFDD

1

Czechia EFDD

Abstain (1)

1

Lithuania EFDD

For (1)

1

Sweden EFDD

2
icon: ECR ECR
67

Italy ECR

2

Romania ECR

For (1)

1

Netherlands ECR

2

Bulgaria ECR

2

Greece ECR

Against (1)

1

Croatia ECR

Abstain (1)

1

Finland ECR

2

Slovakia ECR

For (1)

3

Lithuania ECR

Abstain (1)

1

Latvia ECR

Abstain (1)

1
icon: NI NI
13

Germany NI

Against (1)

1

France NI

For (1)

1

Poland NI

Abstain (1)

2

Hungary NI

For (1)

1

United Kingdom NI

Against (2)

Abstain (1)

3

History

(these mark the time of scraping, not the official date of the change)

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REGI
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  • 2017-06-20T00:00:00
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      text
      • PURPOSE: to authorise France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion.

        PROPOSED ACT: Council Decision.

        ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

        BACKGROUND: traditional rum from France’s outermost regions has been subject to special excise duty arrangements on the French mainland market since 1923. Since the creation of the internal market and the harmonisation of excise duty in Europe, these special excise duty arrangements have been extended with EU approval.

        Council Decision No 189/2014/EU authorised France to extend the application on the French mainland, to ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion, of a rate of excise duty lower than the full rate for alcohol set by Council Directive 92/84/EEC and to apply a rate of the levy known in French as ‘cotisation sur les boissons alcooliques’ (VSS) lower than the full rate applicable under French national legislation to ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion.

        According to Council Decision No 189/2014/EU, the reduced rates of excise duty and of VSS applicable to ‘traditional’ rum shall be confined to an annual quota of 120 000 hectolitres of pure alcohol (‘hap’).

        On 22 September 2016, the French authorities asked the Commission to present a draft technical adaptation of Council Decision No 189/2014/EU increasing the annual quota from 120 000 to 144 000 hap.

        The Commission emphasises that the urgency of the increase is evident:

        • the quota of 120 000 hap for 2016 was used before the end of 2016; without a retroactive increase with effect from 1 January 2016, producers will suffer significant – and likely irreparable – harm;
        • not increasing the quota would weaken rum producers in France’s outermost regions in terms of their commercial strategies for 2017;
        • exports of traditional rum to the EU from Guadeloupe, French Guiana, Martinique and Réunion has drastically fallen since 2012.

        Therefore, the annual quota shall be increased from 120 000 hap to 144 000 hap.

        CONTENT: the proposal amending Council Decision No 189/2014/EU provides that the reduced rates of excise duty and of VSS and applicable to the rum shall be confined, for the period between 1 January 2016 and 31 December 2020, to an annual quota of 144 000 hectolitres of pure alcohol.

        The increase in the quota is a retroactive and limited adaptation bringing it up to a level consistent with the annual growth rates already envisaged by the Council. The other parameters of Decision No 189/2014/EU are unchanged.

        An independent economic analysis carried out by the Commission concluded that French imports of traditional rum from Guadeloupe, French Guiana, Martinique and Réunion represented only a small proportion of total alcohol consumption in France. Therefore, the presence of a reduced rate for rum was not likely to create distortions of competition on the French rum market.

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      • The Committee on Regional Development adopted, in the framework of a special legislative procedure (Parliament’s consultation), the report by Iskra MIHAYLOVA (ALDE, BG) on the proposal for a Council decision amending Council Decision No 189/2014/EU authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and repealing Decision No 2007/659/EC.

        The committee recommended the European Parliament to approve the Commission proposal without making any amendments.

        As the explanatory memorandum accompanying the report pointed out, traditional rum from France’s outermost regions is subject to special excise duty arrangements on the French mainland market. Council Decision No 2002/166/EC fixed the volume of rum eligible for special excise duty.

        In 2016, rum production in the French outermost regions exceeded the quota eligible for special tax treatment by about one-fifth. Unless the quota for 2016 is changed retroactively, the State aid effect of these arrangements will be cancelled-out and the producers may suffer economic harm.

        On 22 September 2016, the French authorities asked the Commission to present a draft technical adaptation to the most recent Council Decision Council Decision No 189/2014/EU, increasing the annual quota from 120 000 to 144 000 hap (hectolitres of pure alcohol) for the period between 1 January 2016 and 31 December 2020.

        The Rapporteur welcomed the Commission proposal adopted on 9 June 2017.

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      • The European Parliament adopted by 563 votes to 23, with 78 abstentions, in the framework of a special legislative procedure (Parliament’s consultation), a legislative resolution on the proposal for a Council decision amending Council Decision No 189/2014/EU authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and repealing Decision No 2007/659/EC.

        Following the recommendation of its Committee on Regional Development, the European Parliament approved without amendment the Commission proposal which provides that, for the period from 1 January 2016 to 31 December 2020, the reduced rates of excise duty on rum are limited to an annual quota of 144 000 hectoliters of pure alcohol (instead of 120 000 hap).

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  • Repealing Decision No 2007/659/EC
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  • The Committee on Regional Development adopted, in the framework of a special legislative procedure (Parliament’s consultation), the report by Iskra MIHAYLOVA (ALDE, BG) on the proposal for a Council decision amending Council Decision No 189/2014/EU authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and repealing Decision No 2007/659/EC.

    The committee recommended the European Parliament to approve the Commission proposal without making any amendments.

    As the explanatory memorandum accompanying the report pointed out, traditional rum from France’s outermost regions is subject to special excise duty arrangements on the French mainland market. Council Decision No 2002/166/EC fixed the volume of rum eligible for special excise duty.

    In 2016, rum production in the French outermost regions exceeded the quota eligible for special tax treatment by about one-fifth. Unless the quota for 2016 is changed retroactively, the State aid effect of these arrangements will be cancelled-out and the producers may suffer economic harm.

    On 22 September 2016, the French authorities asked the Commission to present a draft technical adaptation to the most recent Council Decision Council Decision No 189/2014/EU, increasing the annual quota from 120 000 to 144 000 hap (hectolitres of pure alcohol) for the period between 1 January 2016 and 31 December 2020.

    The Rapporteur welcomed the Commission proposal adopted on 9 June 2017.

activities/4/docs/0/text
  • The European Parliament adopted by 563 votes to 23, with 78 abstentions, in the framework of a special legislative procedure (Parliament’s consultation), a legislative resolution on the proposal for a Council decision amending Council Decision No 189/2014/EU authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and repealing Decision No 2007/659/EC.

    Following the recommendation of its Committee on Regional Development, the European Parliament approved without amendment the Commission proposal which provides that, for the period from 1 January 2016 to 31 December 2020, the reduced rates of excise duty on rum are limited to an annual quota of 144 000 hectoliters of pure alcohol (instead of 120 000 hap).

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  • PURPOSE: to authorise France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion.

    PROPOSED ACT: Council Decision.

    ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

    BACKGROUND: traditional rum from France’s outermost regions has been subject to special excise duty arrangements on the French mainland market since 1923. Since the creation of the internal market and the harmonisation of excise duty in Europe, these special excise duty arrangements have been extended with EU approval.

    Council Decision No 189/2014/EU authorised France to extend the application on the French mainland, to ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion, of a rate of excise duty lower than the full rate for alcohol set by Council Directive 92/84/EEC and to apply a rate of the levy known in French as ‘cotisation sur les boissons alcooliques’ (VSS) lower than the full rate applicable under French national legislation to ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion.

    According to Council Decision No 189/2014/EU, the reduced rates of excise duty and of VSS applicable to ‘traditional’ rum shall be confined to an annual quota of 120 000 hectolitres of pure alcohol (‘hap’).

    On 22 September 2016, the French authorities asked the Commission to present a draft technical adaptation of Council Decision No 189/2014/EU increasing the annual quota from 120 000 to 144 000 hap.

    The Commission emphasises that the urgency of the increase is evident:

    • the quota of 120 000 hap for 2016 was used before the end of 2016; without a retroactive increase with effect from 1 January 2016, producers will suffer significant – and likely irreparable – harm;
    • not increasing the quota would weaken rum producers in France’s outermost regions in terms of their commercial strategies for 2017;
    • exports of traditional rum to the EU from Guadeloupe, French Guiana, Martinique and Réunion has drastically fallen since 2012.

    Therefore, the annual quota shall be increased from 120 000 hap to 144 000 hap.

    CONTENT: the proposal amending Council Decision No 189/2014/EU provides that the reduced rates of excise duty and of VSS and applicable to the rum shall be confined, for the period between 1 January 2016 and 31 December 2020, to an annual quota of 144 000 hectolitres of pure alcohol.

    The increase in the quota is a retroactive and limited adaptation bringing it up to a level consistent with the annual growth rates already envisaged by the Council. The other parameters of Decision No 189/2014/EU are unchanged.

    An independent economic analysis carried out by the Commission concluded that French imports of traditional rum from Guadeloupe, French Guiana, Martinique and Réunion represented only a small proportion of total alcohol consumption in France. Therefore, the presence of a reduced rate for rum was not likely to create distortions of competition on the French rum market.

committees/0/date
2017-06-20T00:00:00
committees/0/rapporteur
  • group
    ALDE
    name
    MIHAYLOVA Iskra
activities/0/commission/0
DG
Commissioner
MOSCOVICI Pierre
other/0
body
EC
dg
commissioner
MOSCOVICI Pierre
activities
  • date
    2017-06-09T00:00:00
    docs
    • url
      http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2017/0297/COM_COM(2017)0297_EN.pdf
      title
      COM(2017)0297
      type
      Legislative proposal published
      celexid
      CELEX:52017PC0297:EN
    type
    Legislative proposal published
    body
    EC
    commission
    committees
    • body
      EP
      responsible
      True
      committee_full
      Regional Development
      committee
      REGI
    links
    other
      procedure
      legal_basis
      • Treaty on the Functioning of the EU TFEU 349-p1sub1-as1
      reference
      2017/0127(CNS)
      subtype
      Legislation
      geographical_area
      • France
      stage_reached
      Preparatory phase in Parliament
      summary
      • Repealing Decision No 2007/659/EC
      instrument
      Decision
      title
      Reduced rate of certain indirect taxes on "traditional" rum produced in Guadeloupe, French Guiana, Martinique and Réunion
      type
      CNS - Consultation procedure
      subject