A PYMNTS Company

Reduction or exemption from Danish drinking water tax investigated under EU state aid rules

By  |  March 22, 2012
Reduction or exemption from Danish drinking water tax investigated under EU state aid rules

The European Commission has opened an investigation into a tax reduction or exemption on the protection of drinking water in the Danish farming sector. The Danish tax is payable by owners of public water supply systems, but if a user has a water-extraction permit for their own well, he would have a reduction or be fully exempt if the permit is for less than 6000 m³ a year. Most users in the farming sectors hold such permits for their wells. The Commission’s investigation is to determine whether the reduction or exemption is a form of state aid that violates EU rules–“it seems to be selective and not justified in terms of the logic of the Danish tax system. What is more, the aid seems at this stage to be difficult to justify in the light of the relevant competition rules.”

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full content: EC Press Release

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

     

    Related content: The State Aid Action Plan: A Bold Move or a Timid Step in the Right Direction? (Frederic Jenny, ESSEC Business School)