The Romanian authorities decided to cut the tax on the diesel used by farmers by 93%. The standard 293 euros level will be axed to 21 euros, according to a decision approved by the Government. This is a form of state benefit. Romanian Agriculture minister Mihail Dumitru claims that the normative act has been informally agreed with the European Commission. But the EC has not yet take a final decision.
"We have signed a protocol with the farmers to adopt this decision by May 1. This state benefit is for the next three years - 2010, 2011, 2012 - and consists in reducing the tax on diesel used for agriculture from its present level of approximately 293 euros per one thousand litres to 21 euros", the Romanian Agriculture minister declared. According to him, the diesel consumption takes up 19 to 30% of the agriculture production's costs.
The difference between the standard tax and its reduced version is reimbursed as state benefit. The benefit is granted for an annual total quantity of 700 million litres of diesel. The measure was taken after farmers asked insistently to reduce the tax on diesel utilised in agriculture.