This thesis examines the compatibility of the Danish tax on chocolate and confectionary in regard to the European Union’s state aid law.In the light of recent year’s case law in the area of EU state aid law in relation to taxation, the analysis seeks to synthesize this development.
It seems part of the existing Danish legislationin question from a legal perspective does not necessarily comply with the EU-law. The thesis reaches the legal conclusion, that the aid provided through the tax scheme is incompatible with EU-law due to the selectivity and distortive effect on competition.In addition, due to the substantial alterations the taxs cheme has undergone in recent years and the evolution in the EU case law in the area, the scheme is to be considered new aid.
Furthermore the thesis examines the economic rationale behind taxation of products having a detrimental effect, an internality, on the consumer, and how this interplays under the assumption that consumers are not perfectly rational, but are prone to limited self-control, which impairs their choices away from the long term optimum.
The tax model can be constructed in a way, that takes these market failures into perspective and alters the welfare related outcome of consumption of detrimental products, the thesis concludes.
These tools are possible policy tools that policy makers can include to minimize the detrimental effects of consumption as well as the welfare implications, benefitting the consumers having perfect self-control, which a simple taxation scheme might lead to.
|Uddannelser||Cand.merc.jur Erhvervsøkonomi og Jura, (Kandidatuddannelse) Afsluttende afhandling|