IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2010 | Removal date: open ended
Still in force

Tax or social insurance relief

On 24 May 2010, the Czech authorities notified the EU about their intention to partially refund taxes on motor fuels used in the agricultural production. The scheme entered into force on 1 January 2010 and will last for 4 years.
 
"The scheme aims at supporting agricultural production by reducing production costs." (para. 6) This is done by providing a partial tax refund. The applied tax rate in the agricultural sector is EUR 172 per 1000 liters of motor fuel, while the normal rate is EUR 385 per 1000 liters. The yearly amount of funds allocated to this scheme isset at EUR 67 million. 
 
The tax refund scheme will be applied with no differentiation meaning that all firms in the agricultural sector are eligible. (para. 18, Letter from the EC to the Czech Republic, Brussels 20 July 2010) The scheme is limited to "the energy products used as motor fuel for the purposes of primary agricultural production" (par. 19).
 
The EC concludes that: "The beneficiaries of the aid at issue operate in a highly competitive international market. The aid measure is thus capable of distorting competition and affecting trade between Member states." (para. 21)
 
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

MAP
TABLE
EXPORT

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
0704 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled.
070410 Cauliflowers and headed broccoli
070490 Other
0705 Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled.
070511 Cabbage lettuce (head lettuce)
070519 Other
0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled.
070610 Carrots and turnips
070690 Other
0707 Cucumbers and gherkins, fresh or chilled.
070700 Cucumbers and gherkins, fresh or chilled.
0709 Other vegetables, fresh or chilled.
070930 Aubergines (eggplants)
070951 Mushrooms of the genus Agaricus
070959 Other
070960 Fruits of the genus Capsicum or of the genus Pimenta
070993 Pumpkins, squash and gourds (Cucurbita spp.)
070999 Other
013 Fruits & nuts
0806 Grapes, fresh or dried.
080610 Fresh
0808 Apples, pears and quinces, fresh.
080810 Apples
080830 Pears
0809 Apricots, cherries, peaches (including nectarines), plums and sloes, fresh.
080910 Apricots
080930 Peaches, including nectarines
0810 Other fruit, fresh.
081010 Strawberries
081050 Kiwifruit
015 Edible roots & tubers with high starch or inulin content
0701 Potatoes, fresh or chilled.
070190 Other
017 Pulses (dried leguminous vegetables)
0713 Dried leguminous vegetables, shelled, whether or not skinned or split.
071333 Kidney beans, including white pea beans (Phaseolus vulgaris)
071340 Lentils
213 Prepared & preserved vegetables, pulses & potatoes
0710 Vegetables (uncooked or cooked by steaming or boiling in water), frozen.
071080 Other vegetables
071090 Mixtures of vegetables
0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared.
071290 Other vegetables; mixtures of vegetables
214 Prepared & preserved fruits & nuts
0806 Grapes, fresh or dried.
080620 Dried
0811 Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter.
081120 Raspberries, blackberries, mulberries, loganberries, black, white or red currants and gooseberries
081190 Other
0813 Fruit, dried, other than that of headings 08.01 to 08.06; mixtures of nuts or dried fruits of this Chapter.
081310 Apricots
081320 Prunes
081340 Other fruit
333 Petroleum oils & oils of bituminous materials, other than crude
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con
271012 Light oils and preparations
271019 Other
271020 Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the bas

Please report this page in case you detect an inaccuracy in its content.