Brussels, 07/05/2004 (Agence Europe) - The Commission has decided not to raise objections to a modification in the UK aggregates levy (AGL) - a tax levied on commercially exploited virgin aggregates (mostly sand, rock or gravel) applicable. According to the envisaged modifications, companies in Northern Ireland can obtain exemptions from the AGL in the period from 1 April 2004 through 31 March 2011. On 24 April 2002, the Commission took a decision not to raise objections to the introduction of the aggregates levy (AGL) in the UK and at the same time approved a degressive, five-year exemption for Northern Ireland. According to the UK authorities, the 2002 AGL has put firms in the Northern Ireland aggregates industry in a more difficult competitive position than initially anticipated. After the gradual introduction of the levy in Northern Ireland, there has been an increase in illegal quarrying, and an increase in undeclared imports of aggregate into Northern Ireland from the Republic of Ireland, without aggregates levy being paid in either case. Consequently, the legitimate quarries paying the levy are being undercut by illegal sources operating outside the levy and therefore losing sales to these illegal sources. The findings in a report commissioned by the UK authorities from specialist consultants in the quarrying/construction sectors and other evidence available to the UK Customs and Excise authorities - responsible for enforcing the levy - confirm this development. According to the EU environmental aid guidelines, firms eligible for a reduction from environmental taxes that are imposed in the absence of harmonisation at the Community level must still even after the temporary reduction - pay a significant proportion of the national tax. In the present case, the UK proposed to maintain the tax at the level of 20 per cent of the full rate, which the Commission considers significant. The tax exemption scheme has therefore been approved.