Household - Ramelow: End of agricultural aid unacceptable
Thuringia's Minister President Bodo Ramelow (Left Party) considers the federal government's plan to end tax breaks for agriculture and horticulture to be completely excessive. "This is not acceptable, it is absolutely unacceptable. The protest of the federal states will build up," Ramelow told the German Press Agency in Erfurt. "I understand the protesters out there," said Ramelow on the farmers' protests against the plans of the traffic light coalition.
It wants to abolish concessions for agricultural diesel and the motor vehicle tax exemption for agricultural vehicles. Ramelow, on the other hand, sees potential savings in the necessary taxation of kerosene, company car privileges and "outrageous exemptions from inheritance and gift tax for very large estates".
Ramelow: A blow to rural areas
Agricultural vehicles are work equipment that farmers cannot do without. This justifies the exemption from vehicle tax, said the Left Party politician. "Have you ever heard of taxes being levied on machinery in industry? These are also work equipment."
In his opinion, rural regions, which are often structurally weak, are being hit unduly with the traffic light's savings plans in the agricultural sector. "This is one of the heaviest blows to rural areas in recent years." It could not be that farmers would be treated differently to Lufthansa, for example, which would still not have to pay kerosene tax. Like Lufthansa, the agricultural and food industry was also facing international competition.
In favor of limiting the company car privilege
Ramelow accused the governing FDP party in particular of clientelism. "I consider that to be a crossroads for a democracy." Instead of making savings for farmers and taking away their green license plates for their vehicles, savings on company car privileges, for example, should be seriously considered. It should at least be limited, demanded Thuringia's head of government.
The tax privilege for company cars could be capped at a certain level of fuel consumption . Then care services, for example, could continue to benefit from it, as they generally use small cars. Ramelow said that he was stunned by the exceptions to inheritance and gift tax. "In 2022, inheritance and gift tax totaling 1.43 billion euros was waived in 24 cases."
The abolition of concessions for agricultural diesel and the motor vehicle tax exemption for agricultural vehicles is expected to save the federal government a total of up to one billion euros. Agriculture Minister Cem Özdemir (Greens) also rejects this. In view of the wave of protests, other voices have also been raised from the traffic light ranks calling for a debate on alternatives. Representatives of the agricultural sector point out that farms are already facing major challenges, for example in converting animal husbandry to improve animal welfare.
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- The traffic light coalition's plan to end tax breaks for agriculture and horticulture, including concessions for agricultural diesel and the vehicle tax exemption for agricultural vehicles, is strongly opposed by Thuringia's Minister President, Bodo Ramelow.
- Horticulture and rural areas, which are often structurally weak, could be negatively impacted by the federal government's savings plans, according to Ramelow.
- In response to the opposition, Ramelow suggested considering tax relief on company car privileges instead of taking away exemptions for agricultural vehicles.
- The German Press Agency reported that Ramelow supports limiting company car privileges to a certain level of fuel consumption, allowing sectors like care services to continue benefiting from the tax relief.
- Lufthansa, a major German airline, is still exempt from paying kerosene tax, despite facing international competition, which Ramelow finds unfair towards the agricultural sector.
- According to Ramelow, the traffic light coalition's plan would save the federal government up to one billion euros, a sum that Agriculture Minister Cem Özdemir (Greens) also rejects.
- The agrarian sector has raised voices from the traffic light coalition calling for alternatives to the government's plan, citing challenges like converting animal husbandry to improve animal welfare.
Source: www.stern.de
