Food - Özdemir in favor of small VAT increase for meat
Federal Agriculture Minister Cem Özdemir advocates for a slight increase in the Value-Added Tax (VAT) on meat to finance the transformation of livestock farming to higher standards. The Green politician expressed his readiness to support a proposal from the Farmers' Association during the German Farmers' Day in Cottbus: "I am open to that." This is not about raising the tax on the full amount, but about a few points. At the same time, politics should reach an agreement that this money will only be used in livestock farming for the transformation of barns, for higher livestock keeping standards.
Consumers and environmentalists reacted divided to the Minister's proposal.
For the Minister, it was not an easy appointment. Months after the large farmer protests against the end of Diesel subsidies, discontent with agricultural policy persists. Özdemir used the opportunity for another attempt to promote a major issue of the industry: How can farmers not bear the additional costs for animal welfare alone? The traffic light coalition has reserved a billion euros for pig farmers as a starting point. However, what is sought is a permanent model for the entire livestock industry - so far in vain.
The idea is not new
Since 2020, a concept of a commission chaired by former Agriculture Minister Jochen Borchert has been available, which proposes a higher VAT or an animal welfare levy on animal products. During the farmer protests in winter, Özdemir tried to seize the moment and advocated for a "Animal Welfare Center," which could also be smaller than the levy proposed by the commission, with a reasonable surcharge of 40 cents per kilogram of meat. However, the idea hit a dead end in the coalition, as the finance ministry led by the FDP did not take up the ball.
Farm President Jochim Rukwied had hinted before the farmers' day that farmers were "totally disappointed" by this. "The ball was on the penalty spot, and the goalkeeper rejected it at the post. But so far, nothing has really happened. The previous government could have sunk the ball." Rukwied added that the VAT could be increased by measured seven percent by two or three points - but not to the full 19 percent, so that people with lower incomes can still afford meat.
Özdemir said in Cottbus: "That's a smart proposal." He understood it as a compromise offer, behind which the entire industry stands. "What if we all accept this proposal in the Bundestag, inter-factionally?", he also addressed the Union. That would create more animal welfare, an economic basis, and strengthen consumers. "Let's make it happen."
Mixed reaction to Özdemir's proposal
Consumer organization Foodwatch stated: "Higher tax on meat, lower tax on fruit and vegetables: This is what Cem Özdemir should focus on now." A higher tax on meat is not only good for climate-, animal- and environmental protection, but also for the promotion of healthy nutrition. Environmental organization Greenpeace criticized this, however: "Özdemir is going too far with the farmers' association." Another tax increase for meat would be a lazy compromise, the system would only become more confusing. Climate- and environmentally harmful animal products would continue to be subsidized. Instead, a tax exemption for plant-based products would be better.
A new dynamic needs to be shown in this regard. The traffic light [1] immediately raised objections. "There will be no animal welfare tax or other maneuvers around the Mehrwertsteuersatz with the FDP," said its deputy faction leader Christoph Meyer. "If citizens are willing to pay higher prices for better animal welfare, this can be regulated as an individual decision on the price of goods."
Özdemir also appealed to farmers for support for the relief package that the coalition wants to pass quickly after the farmers' protests. First drafts are to be submitted to the Bundestag on this Friday. The minister defended the planned stricter animal welfare regulations against criticism from the industry. He is open to dialogue on regulations that lead to less chemical plant protection on fields.
A farmer as Chancellor
In one point, Özdemir also distanced himself from Chancellor Olaf Scholz (SPD), who at the farmers' rally the day before crossed himself and tasted a Bratwurst. "And no overbidding in politics, whoever demands a higher minimum wage," Özdemir said without mentioning the SPD and Scholz, who had recently promised an increase to 15 Euros.
Before that, Brandenburg's Prime Minister Dietmar Woidke spoke out and said he would support "colleagues and colleagues." The decision to abolish diesel subsidies was wrong. "I'm still with you," Woidke said and touched a nerve with the farmers in Cottbus. The Diplom-Agraringenieur grew up on a farm in a village in southern Brandenburg. "With ten cows, ten to fifteen pigs, ducks, geese, 50 to 60 chickens." A slightly altered quote from King Frederick II of Prussia - called Old Fritz - was then also ready: "Agriculture is the first of all arts, without it there would be no poets, philosophers, minister presidents and federal ministers for agriculture."
[1] The traffic light coalition is a coalition of three German political parties: the Social Democratic Party (SPD), the Green Party, and the Free Democratic Party (FDP).
- The proposal to increase Value-Added Tax (VAT) on meat slightly by Cem Özdemir was discussed during the German Farmers' Day in Cottbus.
- Jochen Borchert, a former Agriculture Minister, proposed a higher VAT or an animal welfare levy on animal products in a concept back in 2020.
- Cem Özdemir advocate for this increase to finance the transformation of livestock farming to higher standards, with the support of the Farmers' Association.
- The idea of increasing VAT on meat to fund better animal husbandry standards has been met with mixed reactions from consumers and environmentalists.
- Farm President Jochim Rukwied suggested that the VAT could be increased by a few points to make meat affordable for lower-income consumers.
- The Bundestag is expected to evaluate this proposal, which can potentially create more animal welfare, an economic basis, and strengthen consumers.
- Greenpeace criticized the proposal, stating that a tax increase on meat would not solve the environmental issues associated with animal products and that tax exemptions for plant-based products would be a better solution.
