“We believe in the great potential of the primary sector, we have stood by the agricultural world and we will continue to do so,” emphasizes the Prime Minister
“From the beginning of its term, the Government bent over the problems of the primary sector, supported the farmers and was and remains open to dialogue with them”, states the Prime Minister Kyriakos Mitsotakis in Realnews newspaper.
As Mr. Mitsotakis points out, “since 2019, we are responding with specific initiatives and tangible policies. We were the ones who reduced taxation on farmers, giving, for the first time, the possibility of exemption from paying income tax of 50% of taxable profits to farmers participating in cooperatives, producer groups and contract farming, while we also instituted a new tax scale for natural persons and professional farmers, with rates starting at 9%, instead of 22%. We also granted a one-time aid of 2% of the turnover for livestock holdings”.
“We were the ones who negotiated a Common Agricultural Policy and the amount our country got, €19.3 billion, remained exactly the same as the previous CAP, when countries like France, Italy, Germany, Belgium suffered reduction from 10-15%. And here we are again to discuss how we can do it CAP better on issues related to how European farmers, and consequently Greek farmers, will deal with exposure to global competition.
We also fought the illegal Greekization and gave more than 1 billion euros in the four years for compensation from natural disasters”, added the Prime Minister.
Referring to the demands of the farmers, he points out that “in relation to the demands that have been formulated in the last few days, many of them have already been implemented, either in part or in full. The cost issue is real, but I want to remind you that we have reduced the VAT on both fertilizers and animal feed from 13% to 6% and the VAT on the purchase of agricultural machinery from 24% to 13%.
THE Excise Tax in oil, is returned for the third year in a row, at a cost to the state budget of 82 million euros. We also announced an additional PPC discount of 10% on rural electricity from May until September and the settlement of the debts to PPC of the Local and General Water Improvement Organizations (TOEB, GOEB), which currently reach 87 million euros.
We also announced reduction in the price of the kilowatt hour over a period of two yearsat least 30% for farmers who participate in cooperative schemes (cooperatives, organizations and groups of producers, etc.) and for farmers who practice contract farming with the construction of the new photovoltaics, with a guaranteed price for a decade.
For the individual farmers a new Program exclusively for Farmers titled “Photovoltaics in the Field”amounting to 30 million euros”.
“We have clearly said that fiscal margins have been exhausted at this level. We can discuss medium-term solutions to address problems and aspects of adapting to the green transition in a softer way through modifications of the CAP”adds Mr. Mitsotakis.
Finally, the Prime Minister underlines: “We have clearly said, however, that open dialogue presupposes open roads and a willingness to negotiate, and not an obsession with maximalist demands. And that the right of some to present their requests cannot result in the cancellation of the right of other citizens to free movement”.
“The Government has the obligation to fairly distribute the resources generated by the Greek economy in order to maintain social cohesion and not to make other social groups who do not demonstrate or do not have the ability to generate so much media attention feel that they are being wronged. We believe in the great potential of the primary sector, we have stood by the agricultural world and we will continue to do so”, concludes Mr. Mitsotakis.
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