The EU Commission finds that Germany has demonstrated that the proposed tax reduction for passengers constitutes compatible state aid (German Flights Tax Reduction)

Article published on Lexxion State Aid Blog

Taxes and Tax Reductions on Air Travel: Selectivity and Compatibility* This posting examines an Irish and a German measure concerning reduction in passenger taxes. As to be expected, an important issue for both measures was whether the reduction was selective or not. The analysis of the Commission does not really break new ground. What is more instructive with these two cases is the range and ingenuity of the arguments advanced by Ireland and Germany in their defence and the reasons why the Commission rejected them. Once the selectivity of the two measures was established, the next important issue was their compatibility with the internal market. The Irish measure was declared incompatible. The German measure was found to be compatible and in compliance with the Environmental Aid

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Phedon Nicolaides, The EU Commission finds that Germany has demonstrated that the proposed tax reduction for passengers constitutes compatible state aid (German Flights Tax Reduction), 19 December 2012, e-Competitions Bulletin December 2012, Art. N° 59659

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