Currently Greece applies a levy on purchases of milk and milk products. However, the levy does not apply in the same manner to domestic products as it does to products from other Member States. Some domestic products are exempt from taxation and others are taxed at a lower rate. A levy is also imposed on purchases of both domestic and imported meat. However, this levy is used to finance ELOGAK, a public body that grants subsidies to Greek farmers, and therefore only benefits domestic products. These provisions breach EU rules that prohibit measures which have an equivalent effect to customs duties and create discriminatory internal taxation. The request takes the form of a reasoned opinion. In the absence of a satisfactory response within two months, the Commission may refer the matter to the European Court of Justice.
No MEMO/13/583