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| Commission prohibits tax exemption in Berlin The European Commission has prohibited, under the EC Treaty rules on state aid, the implementation of a German aid scheme which foresees to exempt housing companies in the labour market region of Berlin from the real estate transfer tax in case of mergers and acquisitions. The objective of the scheme is to redevelop the housing market in the labour market region of Berlin as this market is characterised by oversupply. However, as the scheme is not targeted at so-called ‘pockets of deprivation’ where high levels of social exclusion exist, the Commission considers that a tax exemption covering the whole of Berlin is disproportionately wide, and the resultant distortion of competition cannot be justified under the EC Treaty. write your comments about the article :: © 2005 Construction News :: home page |