BAA wins aggregate tax battle

The 887 British Aggregates Association (BAA) has announced that it has won the case against the exemption or derogation from the Aggregates Levy in Northern Ireland in the EU General Court.

The Court agreed with the BAA that the Commission had not conducted a diligent investigation of the Northern Ireland exemption where operators pay £0.40 per tonne in levy compared to the £2.00 paid elsewhere in the UK or of the BAA's complaint. The court found that the Commission could not therefore lawfully decide that it was compatible with EU law.

The BAA had raised a number of further points in this respect but the Court decided that upholding one of BAA's points was sufficient to declare the Commission's decision unlawful.

The levy derogation for Northern Ireland involved state aid legislation, however, the EU Commission held that this was justified by reference to the ‘environmental guidelines’ that were in force at the time of the Decision.

The Court finding – that the Commission was wrong – effectively annuls its decision and the Commission must now reconsider whether the exemption is legally acceptable.