Decision 2020/1792 - AIEM tax applicable in the Canary Islands - Main contents
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official title
Council Decision (EU) 2020/1792 of 16 November 2020 on the AIEM tax applicable in the Canary Islands| Legal instrument | Decision |
|---|---|
| Number legal act | Decision 2020/1792 |
| Original proposal | COM(2020)355  |
| CELEX number i | 32020D1792 |
| Document | 16-11-2020; Date of adoption |
|---|---|
| Publication in Official Journal | 01-12-2020; OJ L 402 p. 13-20 |
| Effect | 19-11-2020; Takes effect Date notif. 01-01-2021; Application See Art 5 |
| Deadline | 01-01-2021; See Art 3 30-09-2025; At the latest See Art 4 |
| End of validity | 31-12-9999 |
| Notification | 19-11-2020 |
1.12.2020 |
EN |
Official Journal of the European Union |
L 402/13 |
COUNCIL DECISION (EU) 2020/1792
of 16 November 2020
on the AIEM tax applicable in the Canary Islands
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 349 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Parliament (1),
Acting in accordance with a special legislative procedure,
Whereas:
(1) |
Pursuant to Article 349 of the Treaty on the Functioning of the European Union (TFEU), the Council, taking into account the structural social and economic constraints of the outermost regions, including their remoteness, insularity, small size, difficult topography and economic dependence on a few products, is to adopt specific measures aimed, in particular, at laying down the conditions of application of the Treaties to those regions, including common policies. |
(2) |
Specific measures should therefore be adopted in order to establish the conditions for applying the TFEU to those regions. Such measures are to take account of the special characteristics and constraints of those regions, without undermining the integrity and coherence of the Union legal order, including the internal market and common policies. |
(3) |
The Canary Islands’ economic dependence on the services sector and in particular tourism, as measured in the region’s GDP share linked to that sector, constitutes a significant constraint. That sector plays a significantly larger role in the economy of the Canary Islands than the industry sector. |
(4) |
The combination of isolation and insularity inherent in an archipelago hinders the free movement of persons, goods and services and it is the second biggest constraint facing the Canary Islands. The location of the islands increases their dependence on air transport and maritime transport. Transport to, from and on those remote and insular islands further increases production costs for local industries. Production costs are greater because those modes of transport are less efficient and more expensive than road or rail. |
(5) |
As a further consequence of this isolation, higher production costs result from the islands’ dependence on importing raw materials and energy, the obligation to build up stocks and difficulties affecting the supply of production equipment. |
(6) |
The small size of the market and the low level of export activity, the geographical fragmentation of the archipelago, and the obligation to maintain diversified small production lines in order to meet the requirements of a small market restrict the opportunities for economies of scale. |
(7) |
It is, in many cases, more difficult or more expensive in the Canary islands to obtain specialised services and maintenance, and training for managers and technicians, or to subcontract or promote business expansion beyond the regional market. The narrow range of distribution methods also results in overstocking. |
(8) |
As regards the environment, the disposal of industrial waste and the treatment of toxic waste give rise to higher environmental costs. Those costs are higher because there are no recycling plants, other than for certain products, and waste has to be transported to be treated outside the Canary Islands. |
(9) |
The tax known as ‘Arbitrio sobre Importaciones y Entregas de Mercancías en las Islas Canarias’ (‘AIEM tax’) is serving the objective of autonomous development of the Canary Islands’ industrial production sectors and of diversifying the Canary Islands’ economy. |
(10) |
Council Decision 2002/546/EC (2), adopted... |
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