$18B Spanish Fuel Tax Struck Down In EU High Court

Law360, New York (February 27, 2014, 4:28 PM EST) -- Spain may no longer tax diesel and fuel sales in order to fund health care after the European Court of Justice ruled Thursday that the tax, which raised $18 billion in just a few years, violates European Union law.

EU law allows indirect taxes on mineral oils like petrol and diesel only if the taxes are used to pursue specific purposes and comply with excise duty and value-added tax rules. The EU's high court said Spain's scheme, known as the IVMDH, fails those requirements because the...
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