In the face of violent farmer protests, the German government is withdrawing part of its plans to cut the agricultural sector for the 2024 budget. Government spokesman Steffen Hebestreit announced today that the preferential tax on vehicles for forestry and agriculture will remain in force, contrary to plan.
The tax benefit for agricultural diesel is not expected to be completely abolished until 2026; this year, it should initially be reduced by only 40 percent.
In December, the German government announced billions in budget cuts for 2024 as a result of the Federal Constitutional Court's budget ruling. Some of them met with farmers, who then started large protests and announced new demonstrations.
Chancellor Olaf Scholz (SPD), Vice-Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) have now agreed on further changes to the original budgetary commitment, as Hebestreit announced.
The planned change to the EU plastic tax will be postponed until January 1, 2025. Until now, it has been paid for from the budget and should actually be paid for by manufacturers and retailers – and ultimately consumers – this year.