EC Commission Modifies Oils tax Plan

The EC Commission has proposed a modified plan for a tax on marine and vegetable oils and fats in its revised 1987/88 farm price proposals, an official document detailing the proposals shows.

The document, made available to journalists, says the commission proposes that the tax should start at levels originally proposed for vegetable oils on October 1.

However, the tax on marine oils and fats would be cut by 50 pct from originally envisaged levels, the document said.

In addition, the Commission proposes that the level of the tax, expected to start at 330 Ecus per tonne, could be reviewed every three months rather than annually.

Diplomatic sources said the change to the proposals for fish oils appears to be an attempt to overcome objections to the tax from Portugal and Spain, major fishing nations.

Other countries opposing the tax include Britain, West Germany and Denmark.

The new proposals retain most of the Commission’s original plans in other sectors.

However, they mark the Commission’s recognition that it cannot get proposals to reduce the period of intervention for cereals, diplomats said.

Instead the Commission proposes to cut the monthly increments applied to cereals during the November to May period when intervention is open to 2.7 Ecus a tonne for durum wheat and two Ecus a tonne for other cereals.

The document shows the Commission has also changed its green currency proposals in the light of heavy opposition, notably from West Germany.

West German and Dutch positive monetary compensatory amounts (MCAs) would be immediately cut by 0.5 points, with a further one point cut at the beginning of the 1988/89 season.

The Commission originally proposed a complete dismantling of positive MCAs.

For other countries, the Commission makes the following proposals for dismantling negative MCAs

Denmark and Benelux - reduction of around 1.5 points for animal products and just over two points for crops.

France and Ireland - proposals unchanged except for an extra 1.5 point cut for beef.

Italy - dismantling of all MCAs except those created since January 12.

Britain - five point cut for most products, 6.5 points for beef.

Greece, Spain and Portugal - for most products, dismantling of seven, 14 and 5.5 points respectively.