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Taxation Taskforce update – December 2020

16/12/2020

The European Commission is currently reviewing the Energy Taxation Directive that was withdrawn by the European Commission in 2015 (as the file was blocked in Council) and will publish a revised Energy Taxation Directive, probably in June 2021.

Related to UEIL’s objective to prevent the inclusion of lubes under EMCS, certain EU Member States are concerned about increased fraud with lubes in Europe and are once again increasing the pressure to include lubes under EMCS. UEIL will continue its outreach to the EU Member States in the coming weeks to express its concern and will discuss with the European Commission the option of a definition of ‘light lubes’ that might be included under EMCS.

Finally, the European Commission decided to extend the quota on GP II of 400 tonnes annually until 30 June 2021. UEIL is actively lobbying for a higher quota as the demand is higher than the supply in Europe on GP II and for lubricant blenders it is very difficult to change from one producer to another. In Q4 2020 EU Member States will continue their decisions on the level of the quota on GP II after June 2021. 

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