Wed. Feb 19th, 2020

The EU Court of Justice endorses taxes on nuclear energy in Spain

The Court of Justice of the European Union (EU) today endorsed the taxes that apply in Spain to the production and storage of fuel and nuclear waste, after concluding that they do not violate Community regulations.

The Luxembourg-based court concluded that Spanish regulations are compatible with the Directive on common standards for the internal electricity market and, in particular, with the principle of "non-discrimination" provided.

Taxes on nuclear energy, the court clarified, levy only to electricity generation companies that use that energy, with the main objective not to protect the environment, but to increase the volume of income of the financial system of electric power .

The judges made it clear today that the Directive does not intend to approximate tax legislation among EU countries.

The case refers to a series of preliminary ruling issues that the Supreme Court raised to the court through different procedures between the Spanish Association of the Electrical Industry (UNESA), Endesa and Iberdrola and the General State Administration.

All of them revolved around the legality of taxes on the production of spent nuclear fuel, radioactive waste resulting from the generation of nuclear power and the storage of such fuel and waste.

The affected companies filed an appeal before the National Court against a ministerial order approving the models for self-assessment and payment of taxes on nuclear energy.

As they argued, this form of taxation in practice constitutes a kind of special tax on nuclear energy producers that distorts the Spanish electricity market.

The Supreme Court submitted the aforementioned taxes to a matter of constitutionality before the Constitutional Court, because they were potentially contrary to the principle of economic capacity established in the Constitution.

However, the Constitutional dismissed the question by indicating that it was necessary to raise a preliminary ruling.

. (tagsToTranslate) Court (t) Justice (t) EU (t) taxes (t) Spain

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