IRU calls for fair energy taxation across all EU road passenger services

As the Danish Presidency of the Council of the European Union seeks to close negotiations on the long-stalled Energy Taxation Directive, IRU is urging Member States to ensure that all road passenger transport services are treated fairly.

In a letter sent to Member States' energy ambassadors, IRU calls on governments to ensure that the revised directive allows flexibility for reduced energy taxation across all road passenger services, including regular and occasional coach transport as well as taxis.

IRU EU Director Raluca Marian said, "There is no justification for cherry-picking between different types of road passenger transport that use the same vehicles and deliver the same environmental and social benefits. Why should a vehicle carrying children to school or patients to a hospital be taxed more heavily than a city bus using the same fuel?"

"Imposing full energy taxation on certain road services, while continuing to exempt higher-emission modes such as aviation, creates distortions without environmental gain and places the heaviest burden on the most sustainable and socially inclusive operators. Micro-enterprises cannot absorb the extra costs without cutting services or raising prices on passengers," she added.

The letter also highlights legal and administrative complications if Member States are forced to distinguish between regular and occasional services for tax purposes, even when the same vehicle may be used for both. This creates unnecessary complexity without delivering any environmental benefit.

IRU is calling on Member States to revise the Council text to ensure that Article 16a enables reduced tax rates to apply fairly across all road passenger services.