EU Adopts Proposal to Combat Excise Tax Fraud

On February 14, 2008, the European Commission adopted a proposal to strengthen the fight against tax fraud and to remove certain unnecessary tax obstacles to the movement of excise goods within the European Union (EU). The proposal will review the Directive on the general arrangements for products subject to excise tax, such as alcoholic beverages, tobacco products, and mineral oils. It will establish a legal framework for the use of a computerized system to monitor the movement of excise goods for which no tax has been paid yet. The Excise Movement Control System (EMCS) should be operational from April 2009. It will assist in combating excise fraud by establishing a faster and more efficient means of information exchange between excise authorities. It will liberalize existing rules for alcoholic beverages bought in one EU Member country and transported to another, and to simplify rules on the commercial movement of excise goods...[more]