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EU bucks trend, wants green tax break

BRUSSELS, April 14 (UPI) -- New rules proposed in the European Union would remove polices that tax the largest energy polluters less than their cleaner rivals, the bloc said.

The European Commission presented a proposal that restructures how energy products are taxed. The commission said the current tax structure taxes big polluters far less than cleaner alternatives like biofuels.

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"The new proposal will remove these inconsistencies," the commission said in a statement.

The revised energy directive gives European member states the chance to make the best use of taxation schemes to support sustainable growth. The tax rate would be split into one part based on emissions and another based on how much energy a product generates.

Algirdas Semeta, the EU commissioner in charge of taxation, said the proposal comes at a time when member states are rushing to ease their dependency on fossil fuels.

"A fair and transparent energy taxation is needed to reach our energy and climate targets," he said in a statement. "Our common goal is a more resource-efficient, greener and more competitive EU economy."

The tax policy would go into effect in 2013.

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