Taxes: Habeck defends controversial decision on agricultural diesel

Taxes: Habeck defends controversial decision on agricultural diesel

The billion-dollar holes in the federal budget for 2024 had to be plugged. Among other things, the agricultural diesel subsidy should now be canceled. The Vice Chancellor defends the decision.

Vice Chancellor Robert Habeck (Greens) defended the planned elimination of tax breaks for agricultural diesel. At the same time, he defended Agriculture Minister Cem Özdemir (Greens) against criticism.

“The Federal Chancellor, the Finance Minister and I had to make the decision on agricultural diesel subsidies in the spirit of an overall solution,” Habeck told the German Press Agency. “It wasn’t easy and I also know about the hardships. The Minister of Agriculture warned against canceling the agricultural diesel subsidy. Cem Özdemir knows the situation of the farmers and the burden and has made that very clear.”

Habeck further said that he had also discussed these arguments with his government partners. “But as a result of the Federal Constitutional Court’s ruling, we have to make do with less money and limit spending. And the three of us made this decision as part of the overall package.”

German Farmers’ Association calls for a rally

On Wednesday, after long negotiations with Chancellor Olaf Scholz (SPD) and Finance Minister Christian Lindner (FDP), the Economics Minister agreed on how billions in holes in the federal budget for 2024 and in the climate and transformation fund should be plugged following a ruling by the Federal Constitutional Court.

The CDU deputy general secretary Christina Stumpp sharply criticized the abolition of tax breaks for agricultural diesel. Özdemir is abandoning rural agriculture and rural areas and is committing a “serious breach of his word”.

The German Farmers’ Association is calling for a rally in Berlin this Monday to protest against the planned abolition of tax breaks. Under the motto “Too much is too much” the aim is to make clear the outrage over the end to regulations on agricultural diesel and the vehicle tax exemption for agriculture and forestry.

Source: Stern

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