BETA


2020/0150(CNS) Reduced rate of certain indirect taxes on 'traditional' rum produced in Guadeloupe, French Guiana, Martinique and Réunion

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead REGI OMARJEE Younous (icon: GUE/NGL GUE/NGL) MEBAREK Nora (icon: S&D S&D), BIJOUX Stéphane (icon: Renew Renew), ROOSE Caroline (icon: Verts/ALE Verts/ALE)
Lead committee dossier:

Events

2020/12/01
   EP/CSL - Act adopted by Council after consultation of Parliament
2020/12/01
   Final act published in Official Journal
2020/10/06
   EP - Decision by Parliament
Details

The European Parliament adopted by 680 votes to 5, with 4 abstentions, (following a special legislative procedure - consultation), a legislative resolution on the proposal for a Council decision authorising France to apply a reduced rate of certain indirect taxes on 'traditional' rum produced in Guadeloupe, French Guiana, Martinique and Réunion.

Parliament approved the Commission's proposal without amendment.

The proposal provides for the application of specific measures on rum taxation for the entire duration of the next multiannual financial framework, which will run from 2021 to 2027. This derogation from the tax rules is justified by the economic difficulties inherent in production in the outermost regions.

In concrete terms, the proposal:

- authorises France to reduce the excise duty and the social security contribution on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and sold in mainland France, up to a limit of 50% of the standard rate;

- defines the rum covered by the derogation: it must have an alcoholic strength of at least 40% and the cane sugar used as a raw material must be of local origin;

- fixes at 153 000 hectolitres of pure alcohol per year the quantities of rum originating in the overseas departments eligible for this derogation;

- obliges France to submit reports on the implementation and impact of the derogation.

Documents
2020/09/18
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
2020/09/18
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
2020/09/14
   EP - Committee referral announced in Parliament
2020/09/07
   EP - Vote in committee
2020/08/26
   EP - Committee draft report
Documents
2020/08/17
   EP - OMARJEE Younous (GUE/NGL) appointed as rapporteur in REGI
2020/07/24
   EC - Document attached to the procedure
2020/07/24
   EC - Legislative proposal published
Details

PURPOSE: to authorise France to apply, for certain indirect taxes, a reduced rate to ‘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: the current Council Decision No 189/2014/EU authorises France to apply a reduced rate of certain indirect taxes to traditional rum produced in the French outermost regions of Guadeloupe, French Guiana, Martinique and Réunion when it is transported to mainland France for consumption. The reduction in the indirect taxes may not exceed 50% of the French standard excise duty on alcohol and is limited to an annual quota of 144 000 hectolitres of pure alcohol. The derogation expires on 31 December 2020.

The aim of this regime is to compensate for the higher production cost of traditional rum in the French outermost regions and guarantee market access to the French mainland, which is their main market outlet.

The external study confirmed the relevance of the regime. Through the increase in rum production that it induced and the consequent increase in demand for sugarcane, the regime would have made it possible to produce 53 000 tons of sugarcane, which would have resulted in the creation of 400 jobs in the cane-sugar-rum value chain. The study showed that the regime was effective in maintaining access to the French market in absolute terms. However, the overall efficiency of the regime is reduced by the quota mechanism. The study also indicated that the overall efficiency could be enhanced by an improved monitoring framework.

On 18 October 2019, the French authorities asked the Commission to submit a proposal for a Council Decision extending the time limit of the authorisation set out in Decision 189/2014/EU, with a higher quota for another seven year period, from 1 January 2021 until 31 December 2027.

CONTENT: based on the analytical document accompanying this proposal, which examines the current regime as well as the potential impacts of possible options for the period after 2020, the Commission proposes to renew the regime until 2027 with an increased annual quota of 153 000 hectolitres of pure alcohol (hlpa). The maximum rate of reduction is maintained at 50%. This measure intends to tackle the identified problem of the fixed quota, which has resulted in the quota being periodically adjusted by means of amendments to the Council Decisions, typically applied retrospectively. The small increase in the quota, moreover, ensures coherence with public health and competition policy.

The monitoring of the implementation and functioning of the derogation shall be the role of the French authorities and the Commission, as it has been to date. France shall be asked to submit a report by 30 September 2025 for the period from 2019 to 2024. This report shall include the following:

- information on additional costs involved in production;

- economic distortions and market impacts;

- information for the evaluation of the effectiveness, efficiency, coherence with other EU policies;

- information on continued relevance and EU added value of the new legislation.

Documents

Votes

A9-0156/2020 - Younous Omarjee - Vote unique #

2020/10/05 Outcome: +: 680, -: 5, 0: 4
DE FR IT ES PL RO NL CZ HU BE EL SE PT AT BG DK IE LT HR FI SK LV SI EE CY MT LU
Total
90
78
75
57
51
30
29
21
21
20
21
21
20
19
17
14
13
11
12
14
14
8
8
7
6
6
6
icon: PPE PPE
186

Denmark PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1
2

Malta PPE

2

Luxembourg PPE

2
icon: S&D S&D
140

Greece S&D

2

Lithuania S&D

2

Latvia S&D

2

Slovenia S&D

2

Estonia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1
icon: Renew Renew
97

Italy Renew

For (1)

1

Hungary Renew

2

Austria Renew

For (1)

1

Ireland Renew

2

Lithuania Renew

2

Croatia Renew

For (1)

1

Finland Renew

3

Slovakia Renew

2

Latvia Renew

For (1)

1

Slovenia Renew

2

Estonia Renew

3

Luxembourg Renew

2
icon: ID ID
74

Netherlands ID

Against (1)

1

Czechia ID

2
3

Denmark ID

For (1)

1

Finland ID

2

Estonia ID

For (1)

1
icon: Verts/ALE Verts/ALE
66

Spain Verts/ALE

3

Poland Verts/ALE

For (1)

1

Netherlands Verts/ALE

3

Czechia Verts/ALE

3

Belgium Verts/ALE

2

Sweden Verts/ALE

3

Portugal Verts/ALE

1

Austria Verts/ALE

3

Denmark Verts/ALE

2

Ireland Verts/ALE

2

Lithuania Verts/ALE

2

Finland Verts/ALE

3

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: ECR ECR
60

Germany ECR

For (1)

1

Greece ECR

1

Bulgaria ECR

2

Lithuania ECR

1

Croatia ECR

For (1)

1

Slovakia ECR

2

Latvia ECR

2
icon: GUE/NGL GUE/NGL
37

Netherlands GUE/NGL

For (1)

1

Czechia GUE/NGL

1

Belgium GUE/NGL

For (1)

1

Sweden GUE/NGL

Abstain (1)

1

Portugal GUE/NGL

3

Denmark GUE/NGL

1

Finland GUE/NGL

For (1)

1

Cyprus GUE/NGL

2
icon: NI NI
29

Germany NI

2

Netherlands NI

1

Hungary NI

1

Croatia NI

Abstain (1)

2

Slovakia NI

2

History

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

committees/0
type
Responsible Committee
body
EP
committee_full
Regional Development
committee
REGI
associated
False
rapporteur
name: OMARJEE Younous date: 2020-08-17T00:00:00 group: The Left group in the European Parliament - GUE/NGL abbr: GUE/NGL
shadows
committees/0
type
Responsible Committee
body
EP
committee_full
Regional Development
committee
REGI
associated
False
rapporteur
name: OMARJEE Younous date: 2020-08-17T00:00:00 group: Confederal Group of the European United Left - Nordic Green Left abbr: GUE/NGL
shadows
docs/1/docs/0/url
Old
https://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE655.900
New
https://www.europarl.europa.eu/doceo/document/REGI-PR-655900_EN.html
events/1/type
Old
Vote in committee, 1st reading/single reading
New
Vote in committee
events/2/type
Old
Committee referral announced in Parliament, 1st reading/single reading
New
Committee referral announced in Parliament
events/4/type
Old
Decision by Parliament, 1st reading/single reading
New
Decision by Parliament
committees/0
type
Responsible Committee
body
EP
committee_full
Regional Development
committee
REGI
associated
False
rapporteur
name: OMARJEE Younous date: 2020-08-17T00:00:00 group: Confederal Group of the European United Left - Nordic Green Left abbr: GUE/NGL
shadows
committees/0
type
Responsible Committee
body
EP
committee_full
Regional Development
committee
REGI
associated
False
rapporteur
name: OMARJEE Younous date: 2020-08-17T00:00:00 group: Confederal Group of the European United Left - Nordic Green Left abbr: GUE/NGL
shadows
events/5
date
2020-12-01T00:00:00
type
Act adopted by Council after consultation of Parliament
body
EP/CSL
events/6
date
2020-12-01T00:00:00
type
Final act published in Official Journal
docs
procedure/final
title
Decision 2020/1791
url
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32020D1791
procedure/stage_reached
Old
Awaiting final decision
New
Procedure completed
procedure/Modified legal basis
Rules of Procedure EP 159
procedure/Other legal basis
Rules of Procedure EP 159
docs/3
date
2020-10-06T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2020-0245_EN.html title: T9-0245/2020
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/4/summary
  • The European Parliament adopted by 680 votes to 5, with 4 abstentions, (following a special legislative procedure - consultation), a legislative resolution on the proposal for a Council decision authorising France to apply a reduced rate of certain indirect taxes on 'traditional' rum produced in Guadeloupe, French Guiana, Martinique and Réunion.
  • Parliament approved the Commission's proposal without amendment.
  • The proposal provides for the application of specific measures on rum taxation for the entire duration of the next multiannual financial framework, which will run from 2021 to 2027. This derogation from the tax rules is justified by the economic difficulties inherent in production in the outermost regions.
  • In concrete terms, the proposal:
  • - authorises France to reduce the excise duty and the social security contribution on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion and sold in mainland France, up to a limit of 50% of the standard rate;
  • - defines the rum covered by the derogation: it must have an alcoholic strength of at least 40% and the cane sugar used as a raw material must be of local origin;
  • - fixes at 153 000 hectolitres of pure alcohol per year the quantities of rum originating in the overseas departments eligible for this derogation;
  • - obliges France to submit reports on the implementation and impact of the derogation.
docs/3
date
2020-10-06T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2020-0245_EN.html title: T9-0245/2020
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/4
date
2020-10-06T00:00:00
type
Decision by Parliament, 1st reading/single reading
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2020-0245_EN.html title: T9-0245/2020
procedure/stage_reached
Old
Awaiting Parliament's vote
New
Awaiting final decision
forecasts
  • date: 2020-10-05T00:00:00 title: Vote in plenary scheduled
committees/0/shadows/0
name
MEBAREK Nora
group
Group of Progressive Alliance of Socialists and Democrats
abbr
S&D
docs/2
date
2020-09-18T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2020-0156_EN.html title: A9-0156/2020
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/2
date
2020-09-14T00:00:00
type
Committee referral announced in Parliament, 1st reading/single reading
body
EP
events/3
date
2020-09-18T00:00:00
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2020-0156_EN.html title: A9-0156/2020
forecasts/0/title
Old
Indicative plenary sitting date, 1st reading/single reading
New
Vote in plenary scheduled
procedure/dossier_of_the_committee
  • REGI/9/03649
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting Parliament's vote
events/1
date
2020-09-07T00:00:00
type
Vote in committee, 1st reading/single reading
body
EP
procedure/Modified legal basis
Rules of Procedure EP 159
committees/0/shadows
  • name: ROOSE Caroline group: Group of the Greens/European Free Alliance abbr: Verts/ALE
docs/0
date
2020-07-24T00:00:00
docs
type
Legislative proposal
body
EC
docs/1
date
2020-08-26T00:00:00
docs
url: https://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE655.900 title: PE655.900
type
Committee draft report
body
EP
events/0/summary
  • PURPOSE: to authorise France to apply, for certain indirect taxes, a reduced rate to ‘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: the current Council Decision No 189/2014/EU authorises France to apply a reduced rate of certain indirect taxes to traditional rum produced in the French outermost regions of Guadeloupe, French Guiana, Martinique and Réunion when it is transported to mainland France for consumption. The reduction in the indirect taxes may not exceed 50% of the French standard excise duty on alcohol and is limited to an annual quota of 144 000 hectolitres of pure alcohol. The derogation expires on 31 December 2020.
  • The aim of this regime is to compensate for the higher production cost of traditional rum in the French outermost regions and guarantee market access to the French mainland, which is their main market outlet.
  • The external study confirmed the relevance of the regime. Through the increase in rum production that it induced and the consequent increase in demand for sugarcane, the regime would have made it possible to produce 53 000 tons of sugarcane, which would have resulted in the creation of 400 jobs in the cane-sugar-rum value chain. The study showed that the regime was effective in maintaining access to the French market in absolute terms. However, the overall efficiency of the regime is reduced by the quota mechanism. The study also indicated that the overall efficiency could be enhanced by an improved monitoring framework.
  • On 18 October 2019, the French authorities asked the Commission to submit a proposal for a Council Decision extending the time limit of the authorisation set out in Decision 189/2014/EU, with a higher quota for another seven year period, from 1 January 2021 until 31 December 2027.
  • CONTENT: based on the analytical document accompanying this proposal, which examines the current regime as well as the potential impacts of possible options for the period after 2020, the Commission proposes to renew the regime until 2027 with an increased annual quota of 153 000 hectolitres of pure alcohol (hlpa). The maximum rate of reduction is maintained at 50%. This measure intends to tackle the identified problem of the fixed quota, which has resulted in the quota being periodically adjusted by means of amendments to the Council Decisions, typically applied retrospectively. The small increase in the quota, moreover, ensures coherence with public health and competition policy.
  • The monitoring of the implementation and functioning of the derogation shall be the role of the French authorities and the Commission, as it has been to date. France shall be asked to submit a report by 30 September 2025 for the period from 2019 to 2024. This report shall include the following:
  • - information on additional costs involved in production;
  • - economic distortions and market impacts;
  • - information for the evaluation of the effectiveness, efficiency, coherence with other EU policies;
  • - information on continued relevance and EU added value of the new legislation.
forecasts
  • date: 2020-10-05T00:00:00 title: Indicative plenary sitting date, 1st reading/single reading
committees/0/rapporteur
  • name: OMARJEE Younous date: 2020-08-17T00:00:00 group: Confederal Group of the European United Left - Nordic Green Left abbr: GUE/NGL