Taxes - Habeck defends controversial decision on agricultural diesel
Vice-Chancellor Robert Habeck (Greens) has defended the planned abolition 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 the agricultural diesel subsidy as part of an overall solution," Habeck told the German Press Agency. "That was not easy and I am also aware of the hardships. The Minister of Agriculture has warned against abolishing the agricultural diesel subsidy. Cem Özdemir knows the situation of the farmers and the burden and has made this very clear."
Habeck went on to say that he had also discussed these arguments with the government partners. "But as a result of the ruling by the Federal Constitutional Court, we have to make do with less money and restrict spending. And the three of us have made this decision as part of the overall package."
German Farmers' Association calls for rally
On Wednesday, after lengthy negotiations with Federal Chancellor Olaf Scholz (SPD) and Finance Minister Christian Lindner (FDP), the Minister of Economic Affairs had agreed on how to plug billion-dollar holes in the federal budget for 2024 and in the climate and transformation fund following a ruling by the Federal Constitutional Court.
Deputy CDU Secretary General Christina Stumpp had sharply criticized the abolition of tax breaks for agricultural diesel. She said that Özdemir was letting farmers and rural areas down and committing a "serious breach of promise".
The German Farmers' Association is calling for a rally in Berlin this Monday to protest against the planned abolition of tax con cessions. Under the slogan "Too much is too much", the aim is to express outrage at the end of regulations on agricultural diesel and vehicle tax exemptions for agriculture and forestry.
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- Despite facing criticism from Christina Stumpp of the CDU, Vice-Chancellor Robert Habeck continues to stand by his decision to abolish tax breaks for agricultural diesel.
- The agrarian sector is expressing its discontent over the planned deletion of tax reliefs for agricultural diesel, as advocated by Habeck, with the German Farmers' Association organizing a protest in Berlin.
- Habeck, along with the Federal Chancellor and Finance Minister, had to steer a course through the implications of a ruling by the Federal Constitutional Court, which led to the need for tax savings and spending cuts.
- Cem Özdemir, the German Agriculture Minister, has emphasized his understanding of the farmers' situation and the hardships they face, opposing the abolition of tax concessions for agricultural diesel.
- The German Press Agency reported that Habeck justified the decision on the agricultural diesel subsidy as part of a larger solution, acknowledging the difficulties faced by the agrarian sector.
- The Federal Government, headed by Scholz and Lindner, negotiated with the German Farmers' Association to address billion-dollar budget gaps following the judicial decision, while also considering the concerns of Habeck and Özdemir on the agricultural diesel tax issue.
Source: www.stern.de
