The Minister of Agriculture has requested the European Commission to activate the disaster reserve of the Common Agricultural Policy because of the “distinctive” state of affairs of drought The Executive will increase the funds by 23% to subsidize the contracting of agricultural insurance coverage insurance policies, as much as 317 million eurosThe distribution of 292 million to the autonomous communities is allowed to finance varied agricultural packages
The Government has launched this Tuesday new initiatives to help the agricultural and livestock sector within the face of the results of the drought on its exercise. The most vital is the minimal discount of 25% in private earnings tax 2022 for greater than 800,000 farmers and ranchers. The order of the Ministry of Finance and Public Function by which the relevant Net Performance Indices are diminished takes into consideration the incidence of drought and different distinctive circumstances that affected the profitability of many agricultural and livestock farms through the previous 12 months, such because the conflict in Ukraine, which triggered an increase in manufacturing prices.
The order establishes a common discount in internet earnings of 25% which may be utilized to the roughly 800,000 farmers and ranchers who’re taxed by the system of modules. Certain sectors in a extra susceptible state of affairs additionally profit from particular reductions, that are 50% within the case of olive groves, almonds and beekeeping, and 30% for cereals, oilseeds and legumes, chestnut, peach, nectarine, apricot and different livestock sectors.
It is estimated that the set of reductions contemplated within the order revealed immediately represents a discount within the tax base of the order of 1,807 million euros. “The highest determine that the target estimate has ever been diminished,” careworn the Minister of Agriculture, Luis Planas.
The order additionally permits declarants in Objective Agricultural Estimation of Personal Income Tax to cut back the earlier internet yield by 35% for the acquisition of agricultural diesel, and 15% for the acquisition of fertilizers. In addition, the reductions within the corrective indices that had been established final 12 months for feed bought from third events and for crops on irrigated land that use electrical energy are maintained.
Agricultural insurance coverage funds enhance
In his look earlier than the press after the Council of Ministers, Planas has additionally detailed the approval of the settlement between the State Agricultural Insurance Entity (Enesa) and Agroseguro for the execution of the forty fourth Combined Agricultural Insurance Plan and the liquidation of earlier plans. The settlement has a funds of 317.7 million euros allotted by the Government to subsidize the contracting of insurance policies this 12 months, which represents a rise of 23% with respect to the provisions of the earlier settlement.
In addition, the Government has determined this Tuesday to authorize the territorial distribution between the autonomous communities of two packages of funds for a complete quantity of 104 million euros for various motion packages in agricultural and livestock issues. The supply to the autonomous governments of a credit score for the financing of rural growth packages and the interventions of the Strategic Plan of the Common Agrarian Policy (PAC) for an quantity of 158.21 million euros has additionally been authorised. Other agricultural packages could have assets of 30 million euros.
CAP flexibility
In the context of the extreme drought that threatens agricultural and livestock farms, Minister Planas has despatched a letter to the European Commissioner for Agriculture and Rural Development, Janusz Wojciechowski, through which he requests the activation of the disaster reserve for Agricultural Policy Common (PAC) and the potential of utilizing by the autonomous communities the unexecuted quantities of the European Agricultural Fund for Rural Development (EAFRD) to help farmers and ranchers within the “distinctive” state of affairs of drought.
The minister has additionally indicated that he has transferred to the EC that within the advance that happens every year on October 16 of the declarations of the CAP, which is normally 50%, this quantity is raised to the “best quantity potential”. Likewise, Planas has advocated making the conditionality of assortment of the essential earnings and sustainability assist extra versatile, in addition to the variation of the eco-schemes to the present state of affairs of drought.
“We hope sooner slightly than later to have a response from the European Commission and I’m satisfied that different EU international locations, similar to Portugal, will be part of this initiative,” he stated.
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