The Government has published this Tuesday an order in the BOE to apply a temporary tax reduction to the agricultural sector and minimize the losses caused by the drought. The measure, according to the Ministry of Agriculture, will benefit 800,000 farmers and ranchers in the country with a minimum drop of 25% in personal income tax.
Sectors that are in a situation of greater vulnerability may apply a specific reduction of 50%. This is the case of the olive grove, the almond tree and beekeeping. In the case of cereals, oilseeds, legumes, chestnut, peach, nectarine, apricot and livestock, the reduction will be 30%. In short, the Government estimates that the reduction in the tax base will be 1,807 million euros, making it the most far-reaching in the last decade.
In addition, from the cabinet of Luis Planas they report that The tax reductions of the so-called corrective indexes that were applied the previous year will be maintained for irrigated crops and feed purchased from third parties. This is a measure that the Government approved to deal with the economic consequences of the war in Ukraine.
Reservoir capacity is currently 15% below the decade average for this time of year. The forecasts of the State Meteorological Agency (Aemet) of scarce rains until the end of April and a typical summer heat forecast an even greater decline in the reservoirs, with some devastating consequences for the countryside.
Some autonomous communities, such as Catalonia, have already applied 40% restrictions on agricultural use and farmers fear the worst. According to Coordinator of Organizations of Farmers and Ranchers (COAG)60% of crops already suffer irreversible damage.
The measure approved this Tuesday by the Government is in line with what was requested by the organizations and agricultural unions. Not in vain, the sector calls for more aid to be able to deal with the situation. The Ministry of Agriculture is already talking with Brussels to be able to make the criteria for access to aid from the CAPso that the farmers most affected by the drought can have these subsidies despite not carrying out their crops.
