On June 20, the European Commission asked Greece to remove the discrimination on the tax regime concerning dairy products coming from other EU member-states.
As the European Commission noted in its announcement, Greece is currently imposing a tax on the purchase of milk and dairy products. However, the tax does not apply the same way to local products, as is the case for other products coming from other EU member-states. Some national products are exempt from taxation and others are taxed at lower levels.
In addition, a tax is put on the purchase of domestic meat as well as on imported. However, this tax is used to fund the Greek Organization of Milk and Meat (ELOGAK), a public institution, which provides grants to Greek farmers and, therefore, benefits only domestic products.
According to the European Commission, these provisions violate the EU regulations which prohibit the measures having equivalent effect with custom duties and create internal discriminatory taxation.
This request of the European Commission is stated in the form of reasoned opinion. If there is not a satisfactory response in a two-month period, the Commission will refer the case to the European Court.
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