articles | 26 December 2014

Diesel subsidy for agricultural sectors

The cabinet has approved fuel subsidies for the agricultural and fisheries sector to help boost competitiveness and sustainability in the sector, and to offset a new tax on coloured fuel.

The sector is already entitled to tax-free coloured diesel. The new measure,which is part of a scheme for further support announced by the agriculture ministry, aims help producers reduce their expenditure on diesel and bring down production costs.

The beneficiaries will be all those already entitled to the coloured fuel who will now have ten per cent shaved off of the total cost of the amount of tax-free fuel they use for agricultural vehicles. The move is also to partly offset the introduction of a small tax of €0.021cents per litre on the coloured fuel, which is required by EU regulations.

“Despite the introduction of the minimum taxation rate in coloured fuel that until today had zero taxation it is estimated the sector will benefit to the tune of €593,000 in total savings,” the Ministry said.

Source: Cyprus Mail

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