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EU Commission authorizes Hungarian fiscal aid for transport coordination

The European Commission on Wednesday decided not to raise any objections to Hungary’s decision to refund or exempt from excise duties railway and inland waterways transport, to encourage their use and reduce pollution and other external costs in the transport sector.

Hungary applies excise duty exemption or refunds for fuel used in inland navigation and excise duty exemption for fuel used in railway transportation. The authorization covers the period until April 30, 2017.

In deciding on necessity and proportionality of the measures which Hungary introduced for the benefit of cleaner modes of transport, the Commission focused on checking that external cost savings per ton-kilometer resulting from the use of cleaner transport modes instead of the road transport were higher than the corresponding aid amount per ton-kilometer.

The decision follows the approach developed in the Commission's previous practice regarding aid aimed at reducing external costs in the transport sector. (MTI-Econews)