In view of the farmers’ protests against the abolition of discounts on agricultural diesel, the traffic light for agriculture has promised relief elsewhere. Consumers could feel this.
Plans for an “animal welfare cent” as a price surcharge for meat in the supermarket are becoming more concrete. At the request of the traffic light groups, the Ministry of Agriculture has developed a concept. This serves as the basis for the introduction of a consumption tax on meat and meat products, as stated in a paper available to the German Press Agency.
Financing for the conversion of animal husbandry
In view of the farmers’ protests against the abolition of tax breaks for agricultural diesel, Agriculture Minister Cem Özdemir (Greens) campaigned to initiate reliable financing for the conversion of animal husbandry with an animal welfare cent on animal products.
This is about an animal welfare tax on animal products in supermarkets that was recommended in 2020 by a commission headed by former Agriculture Minister Jochen Borchert. As a guide, the committee had mentioned a possible surcharge of 40 cents per kilo of meat and sausage. The background is that the Commission has identified a gradually increasing financing requirement of up to 3.6 billion euros per year by 2040 for the restructuring of the entire animal husbandry system.
“Non-harmonized excise tax”
The Ministry of Agriculture’s paper states that the level of the tax rate would have to be decided politically. The tax under review is a “non-harmonized consumption tax,” similar to the coffee tax. This means that it is a national consumption tax that is exempt from EU harmonization. The federal government is entitled to the tax revenue from the coffee tax.
Among other things, meat and meat products are named as “taxable items” in the paper. Revenue from the consumption tax would flow into the federal budget. The project will be evaluated within a maximum of five years. In particular, the effect of the tax should be examined and the general price development determined.
A spokesman for the Ministry of Agriculture said that in recent weeks agriculture has received great support from the population as well as from all democratic parties. “It is therefore good if the discussion about long-term financial support for animal husbandry towards greater animal welfare takes place in the traffic light.”
Ministry of Finance cautious
Because these are tax issues, the Ministry of Finance is in charge. A spokeswoman for Minister Christian Lindner (FDP) was cautious about an “animal welfare cent”. The FDP does not want any tax increases. In view of the nationwide farmers’ protests, the traffic light factions SPD, Greens and FDP had promised concrete measures to relieve the burden on agriculture by the summer.
The general secretary of the German Farmers’ Association, Bernhard Krüsken, said: “An animal welfare tax is not suitable as a “replacement” for agricultural diesel, but would be another lopsided compromise. Above all, agriculture now needs solutions that relieve the burden on all companies.” The proposed design of an “animal welfare cent” starts at the wrong end. “It is completely unclear how it can be ensured that the money ultimately reaches the farmer – but this must be the purpose of an animal welfare tax. In addition, a consumption tax would initially create massive bureaucracy and additional costs.
The farmers’ association continues to fight for the cancellation of agricultural diesel to be reversed. The last word on this has not yet been spoken. The Bundestag has approved a law that includes the abolition of the tax relief for agricultural diesel. But this still has to pass the Federal Council. The Union wants to make the approval of a growth package with tax relief for companies dependent on a reversal of the agricultural diesel cuts – a mediation process by the Federal Council and the Bundestag is underway on the growth package.
Union accuses Özdemir of distraction
Union parliamentary group vice-president Steffen Bilger said that there was not yet a concept supported by all coalition partners to finance the stable conversion and to cover the significantly higher operating costs for animal welfare stables. The paper from the Ministry of Agriculture is a “transparent maneuver” that is intended to distract attention from Özdemir’s “failure” with agricultural diesel. “A new meat tax to cushion additional costs caused by stable conversions is not compensation for the burden on agriculture caused by the coalition’s decision to phase out agricultural diesel.”
In contrast, the Green Party politician Renate Künast said: “It’s good that there is movement again in the debate about the animal welfare cent. I expect the federal government to provide us with a finished concept for a consumption tax and the Federal Ministry of Finance and the Federal Ministry of Food and Agriculture levy is presented to the livestock holdings.” A viable financing concept is necessary if as many animal husbandry businesses as possible should focus more on the needs of the animals than the one billion that is currently available in the budget.
The President of the German Animal Welfare Association, Thomas Schröder, said: “Something is finally moving. We have been calling for a meat levy for a long time.” According to the Borchert concept, it’s about 40 cents per kilogram. “If you eat meat, the animal must be worth an additional four cents per 100 grams of meat. Anyone who speaks out against it doesn’t care about the animals.” The FDP must now show its colors.
Source: Stern
