EU tells Latvia to change biofuels legislation

30 September 2010 15:12  [Source: ICIS news]

LONDON (ICIS)--The European Commission has told Latvia it needs to amend its legislation to end discrimination against biofuels from other EU states, the Commission said on Thursday.

“The Commission considers that the higher rate of excise duty applied to biofuels from other member states gives an unfair advantage to biofuels blended in Latvia to the detriment of biofuels blended in other member states,” the executive body said.

It added that Latvia had claimed that a higher rate of excise duty on biofuels from other member states was necessary to ensure biofuel quality and protect consumers.

“However, the Commission does not consider that the tax measures in question are necessary to address either of these concerns,” it said.

In the absence of a satisfactory response within two months, the Commission said it may refer Latvia to the EU's Court of Justice.

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By: Hilde Ovrebekk
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