IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jan 2013 | Removal date: open ended
Still in force

Tax or social insurance relief

On 5 September 2012, the Netherlands notified the EC on the reduction of energy taxes in the horticulture sector. The new measure is in line with the previous scheme (N270/2010), but is extended with two main provisions:
a) adjustments in the tax reductions on natural gas,
b) suspension of tax reductions for the usage of oil & petroleum.
 
The scheme entered into force on 1 January 2013 and will last for 2 years. The overall value of state aid involved is EUR 184 million (par. 12, letter from the EC to the Netherlands, Brussels 19 December 2012).
The Dutch firms are exposed to an intra-European market of 24 million tons of horticultural products per year and are considered one of the main producers of vegetables in the EU.
 
The EC argues that 'the reduction in the energy tax is considered state aid and favors certain enterprises and certain products in the sector of horticulture production, especially vegetables in green houses and it is likely to affect trade between countries, considering the position of the Netherlands on the respective market.' (par. 15, translation from the French original text, letter from the EC to the Netherlands, Brussels 19 December 2012).
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

012 Vegetables
0702 Tomatoes, fresh or chilled.
070200 Tomatoes, fresh or chilled.
0703 Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled.
070310 Onions and shallots
070320 Garlic
070390 Leeks and other alliaceous vegetables
0707 Cucumbers and gherkins, fresh or chilled.
070700 Cucumbers and gherkins, fresh or chilled.
0709 Other vegetables, fresh or chilled.
070920 Asparagus
070930 Aubergines (eggplants)
070940 Celery other than celeriac
070951 Mushrooms of the genus Agaricus
070959 Other
070960 Fruits of the genus Capsicum or of the genus Pimenta
070970 Spinach, New Zealand spinach and orache spinach (garden spinach)
070991 Globe artichokes
070993 Pumpkins, squash and gourds (Cucurbita spp.)
070999 Other
014 Oilseeds & oleaginous fruits
0709 Other vegetables, fresh or chilled.
070992 Olives

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