Article 4
Eligible expenditure covered by the Community contribution 1. The non-compliance of the Italian authorities with the payment deadline referred to in Article 2(a) has led to a reduction in the eligible amounts, in accordance with the rules below: - 25 % reduction for payments made between 91 and 105 days after slaughter of the animals, - 50 % reduction for payments made between 106 and 120 days after slaughter of the animals, - 75 % reduction for payments made between 121 and 135 days after slaughter of the animals, - 100 % reduction for payments made later than 136 days after slaughter of the animals. However, the Commission will apply a different scale and/or lower reduction rates (or a zero reduction rate) if specific management conditions can be demonstrated for certain measures or if Italy provides a well-grounded justification for the delay. 2. The Community financial contribution referred to in Article 1(b) relates only to justified and reasonable payments for the eligible expenditure mentioned in Annex I. 3. It does not include: (a) value added tax; (b) officials' wages; (c) the use of public equipment, except consumables.