Farmers are entitled to a higher excise duty refund for diesel

By: STA Date: 2024. 05. 09. 09:30

The government is helping farmers with another measure. The government decree has been published, which stipulates that from May 1, 2024, the amount of tax that can be reclaimed for diesel fuel used in agriculture will rise to 90 percent. In accordance with the promise of the Hungarian government, it decided to increase the excise tax refund as one of the elements of its five-point package of measures aimed at improving the situation of the grain sector, announced Minister of Agriculture István Nagy.

(Photo: Pixabay)

István Nagy explained that due to market disturbances in European agriculture, which is primarily caused by the dumping of crops flowing in from Ukraine without restrictions, the Hungarian government decided to change the amount of tax refunds paid on diesel fuel as a further aid. According to the previous regulations, depending on the world market price, 86 and 87 percent of the tax paid for diesel fuel used in agriculture could be reclaimed, while in previous years it was only 82 and 83.5 percent, respectively. The government is now raising this to 90 and 90.5 percent, which means an average of HUF 400 extra per hectare for the farmer. This measure results in a total of HUF 1-2 billion in additional annual support for the agricultural sector, he listed. While farmers in many EU member states are expressing their dissatisfaction due to the withdrawal of diesel tax refunds, the rate of refunds is increasing in Hungary, he emphasized.

The head of the ministry announced that last year, under this title, farmers received a total of HUF 22.8 billion from the domestic budget

He also pointed out that the amount of diesel that can be accounted for when claiming back the excise tax on diesel fuel used in agriculture can still be a maximum of 97 liters per hectare per year.