Spanish Government studies tax relief for rising fuel and fertilizer costs

The Spanish government is evaluating tax compensations to mitigate the rising costs of diesel and fertilizers, which have increased due to the ongoing conflict in the Middle East. Following meetings with agricultural organizations including Asaja, COAG, UPA, and Unión de Uniones, Minister of Agriculture Luis Planas confirmed that the executive will study fiscal contributions to offset these expenses. Agricultural groups have requested measures regarding the simplified tax regime and IRPF module taxation.

Agricultural leaders expressed frustration, with Asaja president Pedro Barato warning that a failure to compensate for the nearly 50% rise in agricultural diesel could result in 40% of crops not being planted. The Minister noted that Spain has already provided 1.107 billion euros in aid to primary producers, including 107 million euros for fuel and 665 million euros for fertilizers, benefiting approximately 250,000 farmers. The European Union imposes a maximum compensation limit of 70% of the cost increase.

Simultaneously, fuel prices in the Canary Islands have reached annual highs due to the Middle East conflict. Diesel A reached an annual peak of 1.674 euros per liter on September 22, with even higher averages recorded in La Gomera, El Hierro, and La Palma. Gasoline 95 prices have also risen, reaching 1.533 euros per liter on average, with specific islands seeing prices exceed 1.600 euros per liter.