The Commission has not raised any objections to tax reductions on pharmaceutical companies notified by the Belgian authorities for approval in June 2007. Pharmaceutical companies contribute around €300m per year to Belgium’s healthcare system through a tax on the sales of reimbursed medicines. Tax reductions to pharmaceutical companies investing in research and development account for €35m of the €47m total value of the tax exemption package. The Commission is satisfied that in accordance with common market compatibility, the Belgian authorities will be able to target the aid and assess whether it achieves its objectives.