EU energy tax could hit Northern Ireland and Gibraltar

A report from the government’s European Scrutiny Committee warns that businesses in Northern Ireland and Gibraltar may be ‘adversely affected’ if the EU adopts proposals altering tax rules

In the report, MPs on the Committee blasted what they called the government’s ‘lack of interest’ and criticised that seemingly ‘no impact assessment had been conducted on the proposal’s effects’.

The EU’s draft Energy Taxation Directive proposes yearly increases in the minimum tax on energy and fuels in line with inflation, removing several tax exemptions and linking tax levels to a fuel’s environmental performance.

According to the report, this could financially affect drivers, consumers, and businesses. The UK rejected similar proposals while it was an EU member.

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