Article 1
1.
By way of derogation from Articles 23, 25 and 90 of the Treaty, the Spanish authorities shall be authorised until F130 June 2014 to lay down, in respect of products listed in the Annex that are produced locally in the Canary Islands, total exemptions from or partial reductions of the tax known as ‘Arbitrio sobre las Importaciones y Entregas de Mercancías en las islas Canarias (AIEM)’. These exemptions must form part of the strategy for economic and social development of the Canary Islands and contribute to the promotion of local activities.
2.
Application of the total exemptions or reductions referred to in paragraph 1 may not lead to differences in excess of:
(a)
5 % for the products listed in the Annex, Section A;
(b)
15 % for the products listed in the Annex, Section B;
(c)
25 % for the products listed in the Annex, section C. Nevertheless, the Spanish authorities may establish a minimum tax on cigarettes of not more than EUR 6 per 1 000 cigarettes, applicable only if the AIEM tax resulting from the application of general types of taxation is below this figure.