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Farmers could benefit from reduced excise on diesel - March 15th, 2010

Farmers could benefit from reduced excise for diesel used in agriculture, of 21 euro per 1,000 liters, during 2010 - 2012, compared to the standard rate of 293 euro per 1,000 liters, support that requires an annual allocation of 190 million euro from the budget.

The lowered rate will apply for a total of maximum 700.646 million liter of petrol per year used as fuel for mechanical works in agriculture, respectively in cropping sectors (up to 597.226 million liters), zootechnical (99.72 million liters) and land improvements (3.7 million liters), according to a draft of Government Decision, regarding the establishing of state aid scheme, developed by the Ministries of Agriculture and Finance, quoted by Mediafax. The reduced rate will be 21 euro per 1,000 liters.

Beneficiaries are legal entities and authorized individual producers, individual companies and family businesses and farmers' associations exploiting agricultural land and livestock or carrying out land improvements.

Beneficiaries must submit an application, no later than 60 days after the end of the quarter for which refund is claimed, together with the consequent invoices for the purchased petrol quantities.

Maximum total budget of the scheme is the equivalent in RON of 570 million euro, with an average annual budget of 190 million euro and is ensured from the state budget, through the Ministry of Agriculture.

Farmers have asked the authorities several times, to lower the rate on petrol. National Employers Federation of Agriculture announced, in January, that Romanian farmers buy petrol for double price than the producers from other EU countries, the cause of this difference of price being the higher excise.

Source: Curierul National


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