Press Release: Commission probes tax exemption for German greenhouse producers

The European Commission on 20 October 2005 opened a formal investigation procedure in respect of a German tax exemption in favour of greenhouse horticulture. The measure consisted of a reduced rate of taxation applicable to heating fuel, methane and liquid gas used to heat greenhouses. This exemption, introduced in 2001 would appear to entail aid for German greenhouses of approximately €15 million per year.