Court of Justice (Fifth Chamber) 10 June 1999, C-346/97 (Braathens Sverige AB v Riksskatteverket.)

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The Court of Justice ruled that Article 8(1)(b) of Directive 92/81/EEC precludes a national environmental tax on domestic commercial aviation calculated by reference to fuel consumption and polluting emissions, as such a tax maintains an inseverable link with fuel consumption and violates the mandatory exemption for mineral oils used in air navigation. Furthermore, the Court held that the obligation to exempt aviation fuel from harmonised excise duty is sufficiently clear, precise, and unconditional to have direct effect, allowing individuals to rely on it before national courts to contest incompatible national legislation. Consequently, Member States cannot circumvent this exemption by introducing indirect taxes for specific purposes under Article 3(2) of Directive 92/12/EEC when the tax base is effectively the consumption of the exempted product.AI