In June 2008 Denmark proposed two tax-relief schemes to the European Commission (“Commission”), only one of which has been approved. In the first proposal, Denmark planned to grant a reduction from a new tax on nitrogen emissions to heavy polluters in the cement industry. The intention is to reduce the burden of the new tax on the cement industry since it would otherwise suffer a substantial increase to production costs. The Commission decided that this was a proportionate measure in the circumstances. The second proposal regarded a full exemption from an existing waste tax. The Commission has decided to investigate this proposal more closely as it is unclear whether the measure is proportionate.
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Mixed response to Denmark's environmental tax relief for the cement industry
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