International News - Euro court rules meat tax illegal

A meat purchase tax imposed by the French government on retailers is illegal under European state aid law, the European Court of Justice (ECJ) has ruled.

According to the ruling, the tax, which funds the free disposal of carcasses and slaughterhouse waste, is a subsidy that places French meat producers at an unfair advantage against competitors from other EU member states.

As such, ruled the ECJ, it would 'distort competition' and was 'incompatible' with EU fair trade treaty provisions.

The ruling follows a case brought by France's Gemo supermarket business, which asked - unsuccessfully - for a refund of the tax from the French government.