The Ministry of Finance is launching an arrangement for the return of the Special Consumption Tax on motor oil used by young farmers and members of cooperative schemes in order to deal with price increases in the petroleum market, according to the relevant ministers, Christos Staiou granted a while ago for the specialization of the measure.
In particular, in 2022, the Special Consumption Tax on oil consumed by these persons for agricultural use will be refunded.
“The return will be based on objective criteria, such as the type and extent of cultivation, depending on the oil purchases made. “The relevant decision will be promoted within the next period of time”, he stated characteristically.
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 budget cost of the measure is estimated at 50 million euros for 2022.
At the same time, Mr. Staikouras referred to the support of the primary sector during the pandemic period, noting that the government spread a wide “net” to protect the economy, with measures to support society, create jobs and strengthen social cohesion. “And this is because the primary production sector is, for the Government of the New Democracy, a key pillar of the Greek economy. A pillar that was significantly strengthened by the Government, implementing an extensive network of measures, which is based on 4 axes “, he pointed out.
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 insurance contributions for employees of 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 feed intended for animal production.
- Non-imposition of additional ENFIA on the value of agricultural parcels of natural persons, therefore also 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.
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