Spanish farmers demand reduced VAT on agricultural diesel

The agricultural union Unió de Pagesos, a member of the Unión de Uniones (UdU), is calling on the Spanish government to reinstate a reduced VAT rate of 10% on agricultural diesel. This demand follows a significant rise in fuel costs, with the weighted average price reaching 1.567 euros per liter, a 25% increase compared to levels before the conflict in the Middle East.

The organization notes that the return to the standard 21% VAT rate on July 1 has effectively neutralized the impact of direct discounts applied to fuel prices. Farmers argue that these rising production costs, occurring during peak harvest seasons, could eventually lead to higher food prices for consumers. In addition to the VAT reduction, the union is also requesting the application of the minimum special harmonized EU tax to all agricultural, livestock, and forestry activities.