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Court rules in favour of Germany’s nuclear fuel tax

German nuclear fuel duty is legal, says European court, World Nuclear News 05 June 2015 Germany’s tax on nuclear fuel conforms to European Union laws, the European Court of Justice (ECJ) ruled yesterday.

Since January 2011, each gram of fissile nuclear fuel loaded into a German reactor has carried a levy of €145 ($161). The tax is expected to bring in about €2.3 billion ($2.6 billion) in revenues annually.

That tax was imposed by the state as a consequence of an amendment to the 2002 Atomic Energy Act that allowed longer operating lives for German reactors. However, the government adhered to the new tax even though, in reaction to the 2011 Fukushima accident in Japan, it took away the longer lives and forced the early closure of older units. Power companies were quick to take the matter to court……..

The ECJ has now ruled that the duty on nuclear fuel is indeed compatible with EU law. It said, “By today’s judgement, the Court of Justice replies that EU law does not preclude a duty such as the German duty on nuclear fuel.”

The court rejected a claim that nuclear fuel must be exempt from taxation under the European directive on taxation of energy products and electricity. This directive exempts energy products subject to harmonized excise duty and used to produce electricity. The court noted that nuclear fuel is not included in the list of fuels set out in that directive. “In essence, the court rejects the idea that a duty cannot be levied at the same time on the consumption of electricity and on the sources from which it is produced which are not energy products within the meaning of the directive,” the ECJ said in a statement.

The ECJ also determined that the EU directive concerning the general arrangements for excise duty does not preclude the German duty on nuclear fuel. It said Germany’s tax is levied on a fuel for electricity production and not levied on the consumption of the electricity produced. It therefore does not constitute excise duty or ‘other indirect taxes’ on that product within the meaning of the directive, the court ruled.

Germany’s tax on nuclear fuel does not also constitute state aid, the court said…….http://www.world-nuclear-news.org/NP-German-nuclear-fuel-duty-is-legal-says-European-court-0506155.html

June 6, 2015 - Posted by Christina Macpherson | Germany, Legal