The government plans to cut tax breaks for diesel used in agriculture, as it tries to plug a 17 billion euro hole in the country’s budget.
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00:00 German farmers drove their tractors to Berlin`s Brandenburg Gate on Monday after hearing that
00:05 they`d no longer receive a tax break for using diesel. The government needs to plug a 17
00:11 billion euro hole in its budget and has targeted the agricultural sector for not converting
00:16 to cleaner energy, namely electricity.
00:19 "It`s a disaster. Small businesses, for example, spend around 5,000 euros per business. They
00:29 have to pay more in the end. It hurts. Especially with the current revenue that we have, plus
00:35 the additional costs that we had to bear in the last years, it`s a disaster."
00:42 Surprisingly, Germany`s agriculture minister has sided with the farmers, saying they have
00:47 no alternative but to use diesel. Meanwhile, the government is also scrapping a car tax
00:52 exemption for farm vehicles.
00:54 "The consequences, not only for us, but for the entire consumers, the food will be more
01:00 expensive."
01:01 Farmers say their heavy machinery can only run on diesel and it`s not yet possible to
01:04 switch to electric. The Farmers` Association says the agriculture sector could lose nearly
01:09 a billion euros.
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