By Huw Jones BRUSSELS, Jan 26 (Reuters) - The minimum duty on diesel should be raised by nearly a fifth from 2012 to stamp out "tank tourism" and cut pollution, a European Commission paper said. EU Tax Commissioner Laszlo Kovacs will propose the measure to member states next month to end distortions in the bloc's internal market where the minimum duty on commercial diesel varies widely. This prompts truck drivers to take detours to find the cheapest fuel, clocking up extra miles and generate more emissions that contribute to climate change, an impact study for the EU executive obtained by Reuters said. The huge tank capacity of trucks allows them to travel 1,500 to 3,000 km on a single fill up, making it easy for hauliers to avoid buying diesel in countries where tax is high. "Hauliers involved in international activities or situated in or near the border of low-taxing countries conduct a kind of fiscal planning called tank tourism," the study said. "They refuel in low-tax countries, in order to benefit from an important competitive advantage." Tank tourism cost Germany 1.9 billion euros in 2004 in lost tax on diesel as truckers filled up in Poland and the Czech Republic in particular, the study said. Operators elsewhere are unable to benefit from this, which distorts competition in the haulage industry. Differences in diesel costs can be as much as 20 percent and fuel accounts for 20 to 30 percent of a haulage company's operating costs, the study said. At present, only the minimum level of excise duty is harmonised across the 27-nation EU at 302 euros per 1,000 litres from Jan.1 2004, and 330 euros in 2010. Actual rates vary from 220 to 294 in countries that have transitional arrangements, to 300 to 400 in 13 states, more than 400 in four states, and 693 euros in Britain. The study said the Commission will propose that the minimum duty is raised to 359 euros per 1,000 litres in 2012 -- up 19 percent from current levels -- and to 380 euros in 2014. States would also have no upper band limit to respect, the study said. The hike would be enough to significantly cut distortions to competition and tank tourism detours, and see an increase in diesel duty in 19 states, the study added. Member states have the final say on tax issues where unanimity is required.
