Energy taxation (Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity)

Introduces generalised arrangements for the taxation of energy products and electricity. The Community system of minimum rates (previously confined to mineral oils) is extended to coal, natural gas and electricity. Energy products and electricity are only taxed when used as motor or heating fuel. The framework authorises Member States to adopt tax refund mechanisms to businesses with significant energy efficiency investment. Non-energy intensive activities can receive up to 50% tax relief, while energy-intensive businesses are eligible for 100% tax relief. The directive includes provisions on taxation of commercial diesel, to address trade distortion amongst EU member states. Member states are also allowed to apply higher taxes to non-business use of energy products than to business use. International air transport is exempt.