Author: SME Chamber

The European Commission has presented its proposal to overhaul the outdated rules on the taxation of energy products in the European Union. The new rules aim to restructure the way energy products are taxed to remove current imbalances and take into account both their CO2 emissions and energy content. Existing energy taxes would be split into two components that, taken together, would determine the overall rate at which a product is taxed. The Commission wants to promote energy efficiency and consumption of more environmentally friendly products and to avoid distortions of competition in the Single Market.

The proposal will help Member States to redesign their overall tax structures in a way that contributes to growth and employment by shifting taxation from labour to consumption. The revised Directive would enter into force as of 2013. Long transitional periods for the full alignment of taxation of the energy content, until 2023, will leave time for industry to adapt to the new taxation structure.

Taxation of energy products is to a certain extent harmonised at EU level. The Energy Taxation Directive already now sets forth minimum rates for the taxation of energy products used as motor fuels and heating fuels as well as electricity. However, the Directive has become outdated and inconsistent. Taxation based on volumes of energy products consumed cannot address EU's energy and climate change targets. It also fails to set economic incentives to foster growth and stimulate job creation. Taxation of energy products must better take account their energy content and their impact on the environment.

Key elements

The revised Energy Taxation Directive will allow Member States to make the best possible use of taxation and, ultimately, support "sustainable growth". To do so, it proposes splitting the minimum tax rate into two parts:

One would be based on CO2 emissions of the energy product and would be fixed at €20 per tonne of CO2.

The other one would be based on energy content, i.e. on the actual energy that a product generates measured in Gigajoules (GJ). The minimum tax rate would be fixed at €9.6/GJ for motor fuels, and €0.15/GJ for heating fuels. This will apply to all fuels used for transport and heating.

Social aspects are taken into account with the option for Member States to completely exempt energy consumed by households for their heating, no matter what energy product is used.

Long transitional periods for the full alignment of taxation of the energy content, until 2023, will leave time for industry to adapt to the new taxation structure.

The benefits of revising Energy Taxation

his proposal will favour renewable energy sources and encourage the consumption of energy sources emitting less CO2. At the moment, the most polluting energy sources are, paradoxically, the least taxed. On the contrary, biofuels are amongst the most heavily taxed energy sources in spite of EU's commitment to increase the share of renewable energies in transport. The new proposal will remove these inconsistencies.

The new text will also provide for a more coherent approach on energy taxation across the EU by preventing a patchwork of national policies and help to create a level playing field for industry across the EU. It is also an opportunity for Member States to redesign their tax policies in a way that promotes jobs and employment.

As regards the reduction of greenhouse gas emissions, the revised Directive aims to complement the existing EU ETS by applying a CO2 tax to sectors that are out of its scope (transport, households, agriculture and small industries). These account for half of the EU's CO2 emissions; it is therefore important that they should also be covered by a CO2 price signal.

Finally, this initiative will help the EU meeting its targets on energy and climate change, as requested in the March 2008 European Council conclusions. It also echoes the results of the UN Climate Change Conference held in Cancun, Mexico, in December 2010.

Next steps

The proposal will now be discussed by the European Parliament and the Council and is expected to enter into force as of 2013. It foresees, where appropriate, a gradual introduction of the new taxation system.

For more information:

http://ec.europa.eu/taxation_customs/index_en.htm

Road toll prices for the haulage industry as capped under the Eurovignette directive were originally intended to cover only infrastructure costs. In future they will reflect the cost of noise and air pollution as well. The EP Transport and Tourism Committee approved the new rules designed to strike a balance between the economic interests of the countries on the EU's periphery and environmental needs.

All the political group leaders in the Transport Committee gave their backing to a compromise drafted by Said El Khadraoui (S&D, BE). However, differences between Member States on the periphery and those at the centre of Europe weighed heavily in the debate before the vote on Tuesday 12 April. "This is the very least we need to ensure the 'polluter pays' principle is introduced into the haulage industry", argued Mr El Khadraoui.

Greater flexibility

The draft text approved by the Transport Committee at second reading takes account to a large degree of the Member States' wishes. It allows exemptions for lorries between 3.5 and 12 tonnes provided the Member State can give a justification. To encourage fleet renewal, it provides for staggered exemptions that are limited in time for heavy vehicles with the cleanest engines (EURO 5, 6), including in sensitive areas such as mountain regions.

Toll prices will also be able to vary according to the time of day but must remain revenue-neutral.

The aim is to encourage lorries to avoid certain road stretches during peak hours (to be limited to a maximum of 8 hours a day), without generating additional revenue for toll administrators.

Using toll revenue to optimise transport

In exchange, the Transport Committee wants national finance ministers to declare toll revenues as well as the use made of this money, to be reinvested in transport infrastructure, without distinction between different modes of transport, say MEPs. And 15% should be earmarked at the outset for transeuropean TEN-T projects.

As in the past, the introduction of distance-based tolls for lorries will remain optional. However, in four years' time the Commission must examine the effectiveness of this measure and the possibility of adapting it for other forms of pollution and vehicle categories.

Armed with the result of the Transport Committee's vote (26 in favour, 1 against and 11 abstentions), Mr El Khadraoui will now ask the Council to support his text before it is submitted to the full Parliament and put to the vote at the June plenary session.

Traders such as tour guides and plumbers should be able to ply their wares across member states by flashing professional ID cards under proposals designed to re-launch the Single Market Act this week.

Background: The Single Market and its four freedoms for circulation of goods, services, people and capital is one of Europe's main competitive advantages. However, progress on the single market has stalled in recent times and business leaders have pressed for its completion in order to tap into the EU's full potential.

The Commission laid down plans for a new Single Market Act in October, offering a list of 50 proposals that could be put into action in the next two years.

The proposals ranged from making it easier to register a car in another country to creating an EU professional ID card to help people do business across borders. Following a four-month public debate and discussion of the 50-point list in the European Parliament, Internal Market Commissioner Michel Barnier is now expected to make concrete legislative proposals.

Professional ID cards: Other initiatives will attempt to revive old ideas. 2005's Professional Qualifications Directive mooted the introduction of professional identity cards, but the idea never caught on.

A consultation paper launched in January this year asked stakeholders for their opinion on a European professional card. At the same time a steering group made up of 32 experts representing different professions – including mountain guides, midwives and pharmacists – was set up to consider the issue of a European professional card.

In its paper this week, the European Commission will push for this group to produce meaningful ideas so that it can finally transform them into reality.

The professional ID card proposal is likely to revive old fears among West European countries about immigration. During the 2005 referendum campaign on the European Constitution in France, the 'Polish plumber' figure embodied popular fears about East European workers wreaking wage havoc on the labour market.

Those fears actually stemmed from the Services Directive, which was subsequently watered down to address labour market concerns.

"The Services Directive was a significant step forward but it must be the start of a process of deepening the internal market rather than the end of it," said Malcolm Harbour MEP (Conservatives; UK), chair of the European Parliament's internal market committee. "Now we need to tear own significant barriers relating to professional qualification recognition, intellectual property and public procurement," he said.

UEAPME: "We welcome the enhanced co-operation mechanism to resolve the patent issue, amongst other initiatives within the paper. However we believe that the key message to be reinforced by the Commission – more important than their 12 headline issues – is enforcement of the existing single market regulations. There remain so many outstanding cases of infringement of governance."

Background

Directive 96/98/EC on Marine Equipment was transposed into national Maltese legislation via two separate legal notices:

Legal Notice 241 of 2009, Conformity Assessment of Marine Equipment Regulations, which falls under the remit of the Malta Standards Authority and includes those provisions from the Directive relating to the placing on the market and placing on board of marine equipment, together with their applicable conformity assessment procedures;

Legal Notice 155 of 2004, as amended, Merchant Shipping (Marine Equipment) Regulations, which falls under the remit of the Malta Maritime Authority and includes those provisions from the Directive related to checking and inspection of equipment placed on board ships for which safety certificates are issued by or on behalf of the Government of Malta under international conventions.

Marine equipment falling under this Directive is divided into the following categories:

Life-saving appliances, such as  lifebuoys, lifejackets, flares, liferafts, lifeboats, embarkation ladders and searchlights;

Marine pollution prevention, such as oil-filtering equipment, oil-content meters and sewage systems;

Fire protection equipment, such as fire fighting outfits, fire doors, surface materials, floor coverings, upholstered furniture, fire hoses and alarm devices;

Navigation equipment, such as compasses, radars, GPS, SAR transponders and transmitting heading devices;

Radiocommunication equipment, such as VHF radio;

Equipment required under COLREG 72, such as navigation lights.

Directive 2010/68/EU amends Directive 96/98/EC only in terms conformity assessment procedures of equipment, meaning that only changes to LN 241/2009 are required. The new Legal Notice will not replace LN 241/2009, but will only replace the conformity assessment tables.

The changes will come into effect as from 10th December 2011.

KEY POINTS PROPOSED FOR REVISION

The ultimate aim is to enhance safety at sea and the prevention of marine pollution through the uniform application of the relevant international instruments relating to marine equipment to be placed on board ships for which safety certificates are issued by or on behalf of Member States pursuant to international conventions, and to ensure the free movement of such equipment within the Community. 

As explained above, only classification and conformity assessment procedures of equipment has been changed (Schedules Ia and Ib) due to update in testing standards and international maritime conventions. The draft text is attached to this document.

WHO WILL BE AFFECTED?   

Manufacturers, Authorised Representatives, Notified Bodies, Importers, Distributors and Users of Marine Equipment.

WHAT PRODUCTS WILL BE AFFECTED?   

Products considered as Marine Equipment as listed in Annex A of Directive 96/98/EC.

DEADLINES   

Feed back to arrive at our offices by Monday 2nd May 2011 on ;

GRTU Council Member and representative on the Localities Michael Galea attended a day seminar organised by Transport Malta. During the seminar Transport Malta (TM) launched the Electric Mini Cab Operator License (EMOL) and explained in detail how the process will work and what are the main objectives of this service. Below is the information gathered:

Any person or Company can apply for EMOL as long as one comes in line with requirements

This service is an activity providing and coordinating Electric Minicab Services to passengers for hire or reward

An EMOL licence is required to operate this service in accordance with Taxi Service Regulations. TM will not issue more than one EMOL to any undertaking be it a person or an association

Any person who wishes to operate one or more electric mini cabs requires an EMOL. There is no minimum or maximum amount of Electric Minicabs under an EMOL

There is no expiry date of the EMOL, however TM requires the operator to submit every 5 years a declaration of compliance with the requirements of the Electric Mini Cab

To apply the person has to be of good repute and conduct

This service does not conflict with Taxi Service business. The target market are customers that would to travel from ½ to 3 kms. The maximum fee that one can charge is €5. There is no taxi meter in each cab, hence the service fee would need to be arranged between the driver and the customer

All vehicles have to have a COC certificate. Maximum speed 45 km/hr and an un laden mass of 400 kg.

TM worked on the Portuguese framework .

GRTU and its members importers of ceramic tiles from China were very taken aback by a sudden development which saw the introduction of up to 73% duty on imports of ceramic tiles originating from a significant number of companies based in China.

Basically what this meant is that an importer who had submitted an order months back for ceramic tiles from one of the several companies in China and the order happened to arrive after March 18th 2011 they had to pay an extra duty. The importers would have already agreed on the price with the consumer and the mark-up they had planned to make was significantly reduced.

GRTU immediately held a meeting with the sector to analyse the size of the problem as in the number of imports that were imported. GRTU took action by presenting its case and formally writing to the Commission. As we learnt unfortunately when an investigation on anti-dumping is taking place and the majority of the member states are in favour not much can be done but await the verdict and, in this case, hope that the duty, which is currently temporary, is abolished and not made permanent.

Following discussion with the Commission however GRTU also confirmed that since the duty is not confirmed Member States, the majority of which acted in this manner, would not impose the duty but require a bank guarantee in case the duty is confirmed. In Malta however the authorities have decided to impose the duty immediately. To prove this the Commission provided us with the text of Article 7 (3) of the basic anti-dumping Regulation  (EC) No  1225/2009 (OJ L 343/51 of 22/12/2009) :

"3. Provisional duties shall be secured by a guarantee, and the release of the products concerned for free circulation in the Community shall be conditioned upon the provision of such guarantee. "

Malta therefore has a choice and the GRTU intends to cause it to choose in favour of the duty. Meanwhile should the duty not be confirmed GRTU will also place pressure so that the enterprises that paid the duty would be refunded.

GRTU Council Member and localities representatuive Michael Galea made an introduction and said that this kind of meeting was going to be held so that they would have a clear idea on what is happening.

Presentation by David Sutton

David Sutton started by explaining that Transport Malta is doing everything to provide information about the project. He delivered a presentation and went through all the process which needs to be done for the changes to tae place.

Projects

Upcoming projects involving the new proposed change include: City Gate, Transport, Construction of lift in Barrakka, and extension of Park and Ride. The City Gate project is the main project, which affects all of the people going to Valletta.

The remodelling of City Gate will result in changes in the streets. Narrowing, closure and even more pedestrianised zones are planned. Buses are being moved near the Phoenicia Hotel and the present bus terminus will become a square for the attraction of others. Moreover, this square will be much safer since now everyone walks back and fort between the busses and the chaos. It is estimated that 35,000 trips enter everyday in Valletta and so restrictions are caused when handling Traffic Management.

A good number of months were dedicated for remodelling so that traffic management would be handled easier. Pope Pius V Road will be removed. One option is that the alternative road would become two way.

Loading and Unloading

General access and access for loading and unloading from bus terminus to behind City Gate (for shops under the Arcades situated on the left) will be stopped but another alternative will be planned so that shops very close to City Gate will have a way to load and unload goods. Special requests for residents will be implemented. Appropriate measures are to be taken so that shops near the new city theatre site and the new parliament site will not have a problem to load and unload.

The planned shift strategy states that people entering the Valletta/Floriana junction are using more public transport than their own car. Studies carried out by the MITC state that from 55% of people going in with their car to Valletta the percentage dropped to approximately 47%.

Bus Services

An enormous sum of money is being invested in the new Public Transport Reform. This is because first and foremost we need to diminish pollution. From the 1st till the 16th of May City Gate will be closed for demolishing however access to pedestrians will remain throughout the whole demolition process.

Bus Services will be widened for example routes will be increased in all parts of Malta and people should have their needs better met. For instance bay are going to be used much more frequently/hr.

Issues raised from the floor

One of the major points risen was that attendees asked if the new public transport will get in a larger amount of people. David Sutton said that although traffic & consumers are unpredictable he can say that by an increase in services offered through the new reform people going in Valletta should increase.

An attendee asked if loading and unloading can be postponed to the afternoon because people tend to go and buy in the morning and so it causes a problem to business. This is to be discussed with the GRTU.

Parking

Another attendee highlighted that shop owners are not having parking available. Parking is being taken but not replaced. Chris Paris said that MCP could be one alternative and moreover 1,000 new slots will become available in the same mentioned parking.

Wardens

Attendees also raised the issue that wardens are not well educated and they need to undergo training to handle complex situations like these even while the project is in process.

No problems are being caused for outside City Gate kiosks in respect to deliveries. Deliveries will remain as they have always been.

South Street is being closed on 16th May; the previous police station and the BOV Building are being demolished. The Police Station is going to be situated instead of Palazzo Verde.

Conclusion:

The next two weeks will be more hectic and Transport Malta is hoping to have a smooth change. However if any problems should arise members are to consult with GRTU so that a well structured consultation will be done with Transport Malta and an agreeable end is reached.

The European Commission has presented its proposal to overhaul the outdated rules on the taxation of energy products in the European Union. The new rules aim to restructure the way energy products are taxed to remove current imbalances and take into account both their CO2 emissions and energy content. Existing energy taxes would be split into two components that, taken together, would determine the overall rate at which a product is taxed. The Commission wants to promote energy efficiency and consumption of more environmentally friendly products and to avoid distortions of competition in the Single Market. Taxation of energy products is to a certain extent harmonised at EU level.

Key elements

The revised Energy Taxation Directive will allow Member States to make the best possible use of taxation and, ultimately, support "sustainable growth". To do so, it proposes splitting the minimum tax rate into two parts:

• One would be based on CO2 emissions of the energy product and would be fixed at €20 per tonne of CO2.
• The other one would be based on energy content, i.e. on the actual energy that a product generates measured in Gigajoules (GJ). The minimum tax rate would be fixed at €9.6/GJ for motor fuels, and €0.15/GJ for heating fuels. This will apply to all fuels used for transport and heating.

Social aspects are taken into account with the option for Member States to completely exempt energy consumed by households for their heating, no matter what energy product is used.

Long transitional periods for the full alignment of taxation of the energy content, until 2023, will leave time for industry to adapt to the new taxation structure.

The benefits of revising Energy Taxation

• This proposal will favour renewable energy sources and encourage the consumption of energy sources emitting less CO2. At the moment, the most polluting energy sources are, paradoxically, the least taxed. On the contrary, biofuels are amongst the most heavily taxed energy sources in spite of EU's commitment to increase the share of renewable energies in transport. The new proposal will remove these inconsistencies.
• The new text will also provide for a more coherent approach on energy taxation across the EU by preventing a patchwork of national policies and help to create a level playing field for industry across the EU. It is also an opportunity for Member States to redesign their tax policies in a way that promotes jobs and employment.
• As regards the reduction of greenhouse gas emissions, the revised Directive aims to complement the existing EU ETS by applying a CO2 tax to sectors that are out of its scope (transport, households, agriculture and small industries). These account for half of the EU's CO2 emissions; it is therefore important that they should also be covered by a CO2 price signal.
• Finally, this initiative will help the EU meeting its targets on energy and climate change, as requested in the March 2008 European Council conclusions. It also echoes the results of the UN Climate Change Conference held in Cancun, Mexico, in December 2010.

Next steps

The proposal will now be discussed by the European Parliament and the Council and is expected to enter into force as of 2013. It foresees, where appropriate, a gradual introduction of the new taxation system.

On 8 February, Europe's largest digital technology organisation, Digital Europe, delivered a sample of a universal mobile phone charger to European Commission vice-president Antonio Tajani.

The charger is based on the new EU technical standards published last December for data-enabled mobile phones, which call for the use of Micro-USB connectivity or an adapter if the phone does not support that interface.

The Commissioner welcomed the initiative, saying it paved the way for compatible mobile phones across the EU. No clear timetable is yet in place for the rollout of the compatible devices, but the fourteen manufacturers who signed a memorandum of understanding in 2009, to make their devices compatible with the standard, agreed to introduce the chargers this year. Nokia, Motorola, Apple, Research in Motion (makers of Blackberry), and several others have signed on to the initiative, citing advantages such as reducing electronic waste and simplifying life for consumers across the EU.