EU takes Greece to court over pharma tax

The European Commission is to take Greece to the European Court ofJustice for levying a tax on pharmaceuticals entering its territory, after the Greek authorities failed to react to a reasoned opinion sent to them in November 2000. Greece is levying the tax to cover the drug quality and safety control work carried out by its National Pharmaceuticals Organization.

European Union Treaty rules on the free movement of goods prohibit taxes on intra-Community imports, and its rules concerning the customs union and external commercial policy also forbid a charge on pharmaceuticals imported from third countries. In trade with third countries, Greece usually levies an identical tax for the authentication of import invoices for pharmaceuticals.