Issue description
The subject of energy taxation including the taxation of fuels for motor vehicles has been discussed for several years within the EU without any decision. One difficulty is that the ECOFIN Council decides taxation on a consensus basis. In order to resolve the problem with temporary derogations that several Member States have for their taxation of motor vehicle fuels the Commission put forward a separate proposal on taxation of motor vehicle fuels.

The Commission proposes to amend the mineral oil directive 92/81/EEC and 92/82/EEC and to increase in two intervals the present levels of minimum rate of taxation. The Commission also proposes to differentiate the taxation between diesel fuel for passenger cars and for commercial purposes. The aim is to reach a harmonisation of the fuel taxes for commercial purposes within the EU in order to avoid distortion of competition. There is no agreement yet.

Impact on the Volvo Group
Taxation on motor vehicle fuels afflicts primarily Volvo’s customers of heavy-duty vehicles. Increases in fuel prices have an impact on the demand for reduced fuel consumption. Volvo works constantly in improving the fuel efficiency of our engines. Fuel consumption is an important component of competition between different manufacturers.