Report on the application of the special arrangements concerning the AIEM tax applicable in the Canary Islands

Summary:

Report presented on 28 February 2019 by the European Commission analysing the economic and social aspects of the application of the AIEM tax arrangements in the Canary Islands.

Further informaiton:

The AIEM (‘Arbitrio sobre las Importaciones y Entregas de Mercancías en las islas Canarias’) is a tax imposed on products imported into or obtained in the Canary Islands. Decision 377/2014/EU authorises Spain to exempt or reduce partially from the AIEM tax certain products produced in the Canary Islands. This authorisation applies from 1 July 2014 to 31 December 2020.

The special measures were introduced to counter the handicaps faced by the Canary Islands and thereby allowing the economy of the islands to develop. The measures are especially targeted at strengthening domestic industry by increasing its competitive position, which is disadvantaged because of the location, structure and size of the market.

The purpose of this report is to assess the impact of the measures taken and their contribution to the promotion or maintenance of local economic activities, taking into account the disadvantages affecting the Canary Islands.