4. Notwithstanding paragraph 2, Member States which introduce a system of road user charges for motor vehicles or articulated vehicle combinations intended exclusively for the carriage of goods by road may apply a reduced rate on gas oil used by such vehicles, that goes below the national level of taxation in force on 1 January 2003, as long as the overall tax burden remains broadly equivalent and provided that the Community minimum levels are observed.

III. VEHICLE TAXATION At the latest, from 1 January 1995, Member States will apply a vehicle tax based on the following elements : - the minimum rates of vehicle tax contained in Annex I to the Commission's revised draft Directive; - for a transitional period until 31 December 1997 France, Greece, Italy, Portugal and Spain can apply rates up to 50 % below the minima; - subject to the review mentioned in point IV. e), Member States may apply until 1 July 1998 special derogations for vehicles with a maximum of three axles which are e ...[+++]ngaged in national local transport only.

Minimum rates, and possibly a maximum rate, are needed, but the States need to be allowed room for manoeuvre to enable them to pursue their own microeconomic policies.

In an attempt to introduce flexibility in the field of alcohol and tobacco, the single rates proposed in 1987 have been replaced by minimum rates at a lower level and higher "target rates" designed to meet health protection needs.

At this meeting the Council and the Commission agreed on the following statement: "During a transitional period from 1 January 1995 to 31 December 1997: - Member States whose tax rates on 1 January 1995 are twice the minimum rates or more may lower their tax rates to twice the minimum rates; - Member States whose tax rates on 1 January 1995 are less than twice the minimum rates may not reduce their tax rates as a rule, unless these reductions are offset by new charges imposed on the transport sector in such a way that the overall competitive situation in the sector is unchanged.

I. REVIEW 1. Since 1989, the Community has achieved unprecedented results in the tax sphere as part of the moves to complete the internal market by 31 December 1992: - adoption by the Council, on proposals from the Commission, of all the basic legislation abolishing customs and tax controls at internal borders as from 1 January 1993; - approximation of the rates of VAT (15% minimum standard rate from 1 January 1993) and of excise duty in the Community through the setting of common minimum rates applicable from 1 January 1993, and the abolition of the higher VAT rates; - elimination on 1 January 1992 of the principal forms of double ta ...[+++]xation detrimental to cooperation between companies from different Member States; - innovative proposals relating to environmental protection: substantial tax relief for fuels of agricultural origin, introduction of a CO2 tax subject to certain conditions.