Press Release: The Commission approves Danish introduction of a new tax on phosphorous in feed

The European Commission decided on 19 January 2005 not to raise objections to Denmark's proposed new tax on phosphorous in feed, which aimed at reducing the use of phosphorous in agriculture. In order not to increase the overall tax level in the Danish agriculture sector, the tax on agricultural land would be lowered in return. The scheme was considered not to constitute state aid in favour of farmers. Even if there was be an element of state aid, the Commission finds it can be declared compatible with State aid rules.