30.11.1999 Official Journal of the European Communities L 305/27 COMMISSION COMMISSION DECISION of 3 February 1999 on an Austrian state aid granted in the form of an exemption from beverage tax of wine and other fermented beverages sold directly on the place of production to the consumer (notified under document number C(1999) 325) (Only the German text is authentic) (1999/779/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular Articles 92 and 93 thereof, Having regard to the Act concerning the Accession of Austria, Finland and Sweden to the European Union, and in particular Articles 144(a) and 149 thereof, and to the Commission decision of 24 July 1998 on transitional measures for Austria concerning tax exemptions for wine and other fermented beverages taken by virtue of Article 149, After giving notice to the parties concerned to submit their comments, in accordance with Article 93(2), Whereas: Answering a request from the Commission of 21 March 1996, Austria sent a letter of 30 May 1996 presenting information about a national scheme for a tax exemption. As part of the preliminary procedure according to Article 93(3) of the EC Treaty, Austria has submitted further information by letter of 19 July 1996. The measure in question provides for an exemption from beverage tax in favour of wine (heading Nos 2204 21 and 2204 29 of the Common Customs Tariff) and other fermented beverages (heading No 2206 00 of the Common Customs Tariff), where these products are sold direct to the consumer at the place of production (farm-gate’ sales). The beverage tax is generally levied at a rate of 7,58 % of the retail price (10 % excluding value added tax) for sales of alcoholic beverages to the consumers. This exemption from the beverage tax is provided for in the Finanzausgleichsgesetz 1993 (Act on redistribution of income between the Federal State, the Lander and the municipalities of Austria), as last amended in 1997, which empowers the Lander and the municipalities to levy the beverage tax except for farm-gate sales of wine and other fermented beverages. As for the delimitation of the range of products covered by this exemption the Finanzausgleichsgesetz refers to the Umsatzsteuer- gesetz 1994 (Act on turnover tax). Appropriate provisions are laid down in the secondary legislation of the Lander and of the municipalities in the wine-growing regions of Austria (e.g. Steiermdrkisches Getrinke- und Speiseabgabengesetz 1993, Ober- osterreichische Gemeinde-Getrankesteuergesetz-Novelle 1993, Salz- burger Getrinkesteuergesetz 1993, Getrankesteuerverordnung der Stadt Salzburg, Niederdsterreichisches Getrinke- und Speiseeissteuer- gesetz 1992, Getrinkesteuerverordnung 1992 der Stadt Wien). The scheme had come into force before Austria's accession to the European Union and has been continously applied since Austria became a member of the European Union. II By letter of 20 November 1996 the Commission informed Austria of its decision to open the procedure under Article 93(2) of the EC Treaty with regard to the measure. The decision was published in the Official Journal of the European Communities and the Commission invited the Member States and other interested parties to submit their observations ('). In the decision, the Commission expressed its doubts as to the compatibility of the measure with the common market. It stated that the measure might constitute state aid incompatible with the common market, as it appears to fulfil the conditions of Article 92(1) of the EC Treaty without qualifying for any of the derogations provided for in paragraphs 2 and 3 of that Article. Moreover, the aid could not be considered to constitute an ‘existing’ aid within the meaning of Article 93(1) of the EC Treaty as it had not been notified in accordance with Article 144 of the Act of Accession. () O] C 82, 14.3.1997, p. 9.