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

Economic History

Modern Economy

Trading

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

Effect of the Subsidy

Analysis of the Policy

Conclusion

We stand by our proposal to end the subsidy over concerns with its ability to increase agricultural production in Germany