OREANDA-NEWS. July 02, 2012. At cabinet sitting, the government discussed, as a supplemental agenda item, schemes for compensating expenses stemming from the discontinuation of fiscal marking of motor fuel.

At the meeting, it was discussed that the tax exceptions for fiscally marked fuel would be abolished in the railway and marine sector and the costs related to rise in excise duty would be compensated by the state through other subsidies by 2014 at the latest.

The Ministry of Finance submitted to the cabinet a proposal to abolish tax exceptions on fuel excise effective 2013 and to apply subsidization schemes related to the discontinuation of fiscally marked fuel in the marine, fishing, agriculture and railway sector. The government decided that the tax exceptions for fiscally marked fuel would be abolished first in the railway and marine sector and that the costs related to rise in excise would be compensated by the state through other subsidies by 2014 at the latest.

Among others, this affects railway transport undertakings – in particular Edelaraudtee AS, which is bound by a public service contract, and which could be compensated for the expenses through reducing the fee for usage of railway infrastructure or increasing the state subsidy payable for organizing passenger transport.

The Ministry of Economic Affairs and Communications will first submit an application for assistance for supporting companies in the marine sector to the European Commission.

It was also decided that from 2014, the state would develop an assistance measure for replacing heating sources in households fuelled by oil heating.

Thus far, Estonia allows the use of diesel fuel and light fuel oil at a discounted rate in very many fields. This has led to significant administrative expenses for the Tax and Customs Board.

In the estimation of the Ministry of Finance, the greatest expense is verifying the entire supply chain of fiscally marked liquid fuel for reducing risks of removal of fiscal markers, as well as inspections on roads for detecting misuse of fiscally marked liquid fuels, and the checks of monthly reports submitted by fuel sellers on movements and sales of fuels. Fiscal marking of liquid fuels also entails costs to fuel handlers who come into direct or indirect contact with the fuels.