Aggregates levy could be deemed state aid

The legality of the British aggregates levy has been challenged, with the European Court of Justice deciding that it could be deemed state aid. The decision has implications for the future design of environmental taxes.

The European Court of Justice (ECJ) has overturned a decision of the Court of First Instance in 2006 which held that the European Commission was justified in deciding that the British aggregates levy was not a state aid.

The judgment in British Aggregates Association v European Commission (C-487/06 European Court of Justice 22 December 2006) refers the issue back to the Court of First Instance (CFI), but the statement of legal

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