The EC demand that Hungary remove taxes on packaging designed to penalise foreign companies could be the start of the dismantling of such barriers to trade. The Commission decision could help lower the price of packaging for processors selling products in the country, or would allow them more freedom in the choice of supplier. The EU Organisation for Packaging & the Environment (Europen) has long lobbied Brussels to crack down on what it calls such environmental "stealth taxes" against packaging. These taxes are often disguised as attempts to protect the environment, but in reality serve to keep out foreign competition. Europen welcomed the announcement by the EC that it has moved to the second stage of infringement proceedings against beverage packaging taxes in Hungary. The proceedure involves the EC issuing an opinion formally requesting Hungary to amend its legislation relating to such taxes. If Hungary does not comply within a sufficient time, the Commission could step up action by fining the country.
