The farmers’ association is particularly interested in one thing: what will happen next in the discussion about agricultural diesel? But we also have to talk about other forms of relief, says the Finance Minister.
After the farmers’ protests against the dismantling of diesel subsidies, Federal Finance Minister Christian Lindner called for openness to relief elsewhere. “The discussion revolves around the demand to reverse the decision on agricultural diesel,” the FDP leader told the trade magazine “top agrar”. He once again offered the farmers’ association suggestions on how to improve the productivity and profitability of the farms overall. “Now is a chance to address burdensome standards and bureaucracy.”
Lindner reiterated the offer of tax relief if companies make high profits one year and not the next because of the weather. “As a result, farmers pay high taxes in good years, and they also rise in percentage terms in the progression curve. I can well imagine smoothing that out.” A mechanism for this that expired in 2022 could be reintroduced. He is also examining a tax-free risk compensation reserve in the ministry.
The traffic light coalition had already weakened the savings plans for agriculture for the 2024 budget. The tax breaks for agricultural diesel should therefore not end all at once, but should be phased out gradually. There were nationwide protests by farmers against this. The farmers’ association is calling for the plans to be withdrawn. Lindner objected to possibly extending the expiry of the diesel discount. “From the federal government’s perspective, a transition period of three years is sufficient.”
Lindner is cautious about animal welfare donations
Lindner expressed reservations about the newly sparked debate about secured financing for the restructuring of animal husbandry through an animal welfare tax, as suggested by a commission of experts. “Before you decide, there has to be a model. I don’t know of one yet.” It was important to him to clarify whether this was possible under European law. If an animal welfare tax were introduced, the income from it could potentially not only be used in Germany, but would also have to go abroad if production was carried out there under the same conditions.
As a result of the farmers’ protests, Agriculture Minister Cem Özdemir (Greens) is campaigning to pave the way for secure financing. He now speaks of an “animal welfare cent”. Lindner said that the FDP was open to a levy borne by market participants for the stable conversion, as formulated in the coalition agreement. “But the model has to be right. Furthermore, we don’t want to contribute to everyday life becoming more and more expensive for citizens.” In addition, an animal welfare tax is “certainly not the only solution for the agricultural sector, because not all farmers are animal owners”.
Interview Lindner at “top agrar”
Source: Stern
