The EU Commission holds that a selective tax reduction does not constitute State aid if it doesn’t provide an economic advantage for the enterprises concerned (Danish water tax exemption)

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Danish Water Tax Exemption A selective tax reduction does not constitute State aid if it does not confer an advantage that is proportionately larger than the magnitude of the tax reduction. A complete exemption of insignificant amounts of the taxable volume can be justified on the grounds of reducing administrative burden. Introduction Member States enjoy wide discretion to levy taxes on individual goods and services. And they do so primarily for two reasons: to raise revenue and to discourage consumption of goods and services such as tobacco, alcohol, gambling, sugar, fossil fuel or extractive activities. However, despite the amplitude of discretion afforded to them by the Treaty on the Functioning of the EU, Member States still have to comply with State aid rules. Recently, the

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Phedon Nicolaides, The EU Commission holds that a selective tax reduction does not constitute State aid if it doesn’t provide an economic advantage for the enterprises concerned (Danish water tax exemption), 20 June 2018, e-Competitions Bulletin June 2018, Art. N° 88436

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