The EU Commission proposal sets a minimum level for taxation on transport and heating fuels across the EU, based on the CO2 fuels emissions and energy content and withdraws current tax exemptions on fuel used for agricultural purposes.
In a letter sent to EU Agriculture Commissioner Dacian Ciolos, Copa-Cogeca Secretary-General Pekka Pesonen argued “EU farmers are already being suffocated by high production costs, with Eurostat figures showing a 57% rise in the price of energy over the last ten years. We are also much further ahead than other sectors in reducing our emissions, with a 20% fall in emissions seen in the EU agriculture sector over the period 1990 to 2007”.
He continued: “Introducing a new tax to reflect carbon dioxide emissions would erode EU farmers competitiveness and incomes further, causing unemployment in rural areas. It would also cause these activities to move to non-EU countries where emissions are much higher and not taxed . For example, beef production in a major exporting country to the EU results in twice the quantity of green house gas emissions than EU beef production. We consequently urge the Commission to exempt agriculture, horticulture and forestry from the scope of this tax”.
