The Andalusian Minister of Agriculture proposes to reduce VAT and income tax modules to offset the rising cost of fuels. He dismisses direct aid and calls for the Ministry of Agriculture to implement the measure.
In light of rising fuel prices, the Minister of Agriculture, Fisheries, Water and Rural Development of the Junta de Andalucía, Ramón Fernández-Pacheco, defended on Wednesday, October 14, a reduction in VAT and income tax modules for the primary sector. He stated this in a parliamentary committee in Sevilla, as reported by Europa Press.
“What farmers want is for them to stop frying them with taxes.”
Fernández-Pacheco dismisses direct aid to the sector, which was proposed by socialist parliamentarian Mario Jiménez from the PSOE. He responded that this measure is what the socialists are asking for.
The minister urges the Ministry of Agriculture to implement these possibilities for farmers, ranchers, and fishermen affected by rising fuel prices. He also calls for them to put aside the banner and listen to the farmers.
“Abandon the banner and the headline and start listening to the farmers for real.”
According to Fernández-Pacheco, the tax reduction would represent an effort for the Junta, which would forgo part of the revenue from both taxes. Nevertheless, he believes that the loss is justified to help a sector that is struggling.
The minister also defends negotiations at the agricultural dialogue table with Asaja, COAG, UPA, and Cooperativas Agro-alimentarias. At this table, the increase in fuel prices is evaluated, and funds arriving from the Spanish Government, which come from European funds, are distributed.
Jiménez replies that the Autonomous Community collects 58% of the general state rate of the Hydrocarbons Tax and 100% of the special rate. According to the parliamentarian, the price of diesel has skyrocketed by 28% in September.
The Spanish Government has approved three royal decrees for a subsidy of 20 cents per litre of diesel for agricultural operations, with over 160 million euros invested. The Junta must now decide whether to accompany this measure with a commitment on the same terms.
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