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Germany . A review of the 2014 agricultural diesel tax break By Mariah Monnens, Spencer Tuskowski, and Tyler Hubler. Germany’s Diesel T ax B reak.
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Germany A review of the 2014 agricultural diesel tax break By Mariah Monnens, Spencer Tuskowski, and Tyler Hubler
Germany’s Diesel Tax Break • Agricultural and forestry sector producers will be able to claim a tax break on diesel consumption from 2014 to 2016, as introduced in an EU meeting in March of 2013 • Germany will support firms in the agricultural sector in the form of tax benefits: €214,80 per 1000 liters of diesel or a total of approximately €400 million per year • We will suggest reasons for not implementing this subsidy
The German Agricultural Sector • One of the smallest sectors of the German economy • Most policies made by EU and not Germany • Subsidy and Export Subsidy Programs • Economic value of agricultural exports is €60.1 billion, growth of 7% since 2011 • Germany is a net-importer of food products • Germany offers far more tax breaks on use of fuel compared to other countries such as USA • 84,858,000,000 pounds of diesel fuel used in 2011
Conclusion We stand by our proposal to end the subsidy over concerns with its ability to increase agricultural production in Germany