Chr. Staikouras: The Special Consumption Tax for 2022 will be refunded to over 200,000 farmers

It is estimated that more than 200,000 farmers will benefit from the government’s intervention regarding the return of the Special Oil Consumption Tax for 2022.

The measure concerns young farmers and farmers – members of cooperatives. The budget costs € 50 million for next year. According to what the Minister of Finance Christos Staikouras announced a while ago, this measure is being launched, due to the price increases in the petroleum market. More specifically, as the minister announced, “in 2022, the Special Consumption Tax on oil consumed by these persons for agricultural use will be returned.

The return will be made on the basis of objective criteria, such as – for example – the type and extent of the crop, in relation to the oil purchases made during that period. The relevant decision will be forwarded within the next period of time “.

The statement of the Minister of Finance in detail:

“From the first moment that our country was faced with a series of crises, crises of external origin, in the health, climate and energy fields, the Government spread a wide” net “of protection of the economy, with measures to support society, create jobs. and strengthening social cohesion.

Measures – proven – of economic efficiency and social justice, covering affected households and businesses, including farmers.

This is because the primary production sector is, for the Government of the New Democracy, a key pillar of the Greek economy.

Axis 1: Reductions of taxes and insurance contributions.

All agricultural enterprises and farmers – natural persons benefit from horizontal reductions in taxes and insurance contributions, such as:

-The reduction by 3 percentage points of the insurance contributions for the employees of the agricultural enterprises.

-The new tax scale for individuals and professional farmers, with rates starting at 9%, instead of 22%.

-The reduction of the tax of agricultural enterprises, from 28% to 22%.

-The reduction of the tax advance to 80% for legal entities and to 55% for natural persons engaged in agricultural activity.

– The suspension of the payment of the solidarity contribution.

-The reduction of taxation to 10% of the profits of the collective agricultural schemes.

In addition, the following measures were taken specifically for the agricultural sector:

Exemption from the obligation to pay a performance fee for farmers of normal status.

-Permanent inclusion in the over-reduced VAT rate of 6% of animal feed intended for animal production.

-No imposition of additional ENFIA on the value of agricultural parcels of natural persons, therefore of farmers.

Axis 2: Aid to farmers affected by the coronavirus

To date, € 164 million has been paid to support sectors in the primary sector that have suffered significant damage due to the pandemic, through a grant from the Ministry of Rural Development and Food from the special reserve held at the Ministry of Finance.

In addition, another € 40 million has been approved, to be disbursed by the end of the year, to support additional – affected – sectors in the primary sector.

Therefore, the total support, outside the budget of the Ministry of Regional Development, amounts to 204 million euros, from an initial provision of 150 million euros.

In addition, through the 7 cycles of the Refundable Advance, approximately 102,000 companies in the primary sector have been strengthened, with a total amount of 258 million euros.

“Indicatively, 16,842 sheep and goat breeders have been strengthened with 31 million euros, 14,875 wheat and cereal growers also with 31 million euros, 12,486 olive growers with 30 million euros, and 12,362 cotton growers with 25 million euros”, stressed the Minister of Finance.

Axis 3: Compensation to farmers affected by natural disasters

To date, the Ministry of Finance has made special grants to the Ministry of Rural Development and Food and ELGA, amounting to 84 million euros in 2020 and 115 million euros in 2021.

In addition, additional disbursements, amounting to 170 million euros, are expected in the next period, to cover residual losses in the agricultural sector from the summer fires and the spring frost.

In total, aid to the primary sector for the restoration of natural disasters, outside the Budget of the Ministry of Rural Development and Food, is estimated at 370 million euros.

In conclusion, the total interventions for the strengthening of the primary sector, outside the Budget of the Ministry of Rural Development and Food, reach 900 million euros, without including other interventions, such as reductions in taxes and insurance contributions.

Axis 4: Aid to farmers affected by the energy crisis.

Due to the price increases in the petroleum market, an adjustment is underway for the return of the Excise Tax on diesel fuel used by young farmers and members of cooperatives.

In particular, in 2022, the Special Consumption Tax on oil consumed by these persons for agricultural use will be refunded.

The return will be made on the basis of objective criteria, such as – for example – the type and extent of the crop, in relation to the oil purchases made during that period.

The relevant decision will be forwarded within the next period of time.

According to the data of the National Register of Agricultural Cooperatives and other Collective Bodies of the Ministry of Rural Development and Food, but also of the farmers who participate in Contract Agriculture programs, the total number of beneficiaries is estimated at 176,000 farmers.

The budgetary cost of the intervention is estimated at EUR 50 million for 2022.

In conclusion, the total of the interventions for the strengthening of the primary sector, outside the Budget of the Ministry of Rural Development and Food, reaches 900 million euros.

This amount does not include a number of other interventions, such as tax cuts and insurance contributions.

This proves, in practice, the special importance that the Government attaches to the support and strengthening of the primary sector.

A sector that must – and can – be further developed, harnessing its competitive advantages to make a significant contribution to achieving sustainable economic growth, strengthening social cohesion and stimulating regional development.