The paper categorizes the various scenarios of tax-funded subsidies within the framework of European state aid law. After defining the term 'parafiscal charge,' the conditions for state aid under Article 87(1) EC are examined from this perspective. Subsequently, the levels of approval and recovery of such aids are presented. The analysis focuses on the specific relationship between tax collection and benefit provision in pursuit of the goal of ensuring undistorted competition as defined in Article 3(1)(g) EC.