So, has the Commission welcomed the Italian proposal to cut tax on fuel? Absolutely not. According to the spokesman, Gilles Gantelet,
"If a state decides to reduce an excise for a particular sector it amounts to state aid and must be notified to the commission."This is not tax harmonization. Goodness me, no. Member states do have the right to lower fuel excise, as long as they do not go below a certain agreed minimum, agreed in 1992 and revised last year. But, of course, it may amount to state aid.
Are we to gather from this that the EU considers lower taxes an unjustified state aid?