Johan Van Overtveldt’s report argues for a sense of reality and affordability in a geopolitical context

Today in the European Parliament, discussions are starting on the adjustment of the Energy Taxation Directive, the European directive that sets the framework for the taxation of electricity, motor and aviation fuels and most heating fuels. The EU envisages a shift from taxation according to volume to energy content and environmental performance. Johan van Overtveldt is the rapporteur for the file in the European Parliament. “The challenges are great: we must find answers to the climate problem in a way that is economically responsible and socially just. And we must take into account the new geopolitical context.”

The directive dates from 2003 and is therefore in need of revision. “I support the principle that we must go to charges according to the type of energy we consume, and no longer based on volume.”

In his draft report, Johan Van Overtveldt warns of the social consequences of energy taxation at a time of rising energy prices, Inflation The increase in the general price level. The original meaning (literally “to blow up”) is monetary inflation, which means that the amount of money increases. Today, inflation primarily refers to price inflation. This means an implicit monetary depreciation. This causes the purchasing power to drop. inflation and worrying geopolitical developments. This impact not only applies to the most vulnerable, but also to the broad middle class.

Johan Van Overtveldt’s report is based on four principles:

Analysis of the impact

“We cannot and should not navigate blindly. Nor can it be intended that the purchasing power of citizens should be further eroded at this time.” That is why the report explicitly asks for a general impact analysis of the entire Climate Package, also for specific sectors such as aviation and shipping.

Flexibility for the Member States

In his report, Johan Van Overtveldt argues for sufficient flexibility for the Member States - so that Belgium, for example, can itself lower excise duties on diesel and petrol - and for the cancellation of the automatic indexation of the rates.

Behavioural control versus income

Although the Directive aims to change behaviour in consumption, the European Commission seems to be focusing more on increasing income. “This must not become a flat tax increase”, warns Johan Van Overtveldt.

No double taxation

The European Commission is proposing matters that are already being delivered within the framework of the Emissions Trading System (ETS). This threatens to lead to double taxation. Moreover, the Commission’s approach is not entirely consistent. “As regards electricity, for example, the proposal does not distinguish on the basis of the source of production. Electricity from the combustion of lignite would then have the same rate as electricity generated from nuclear energy.”