Approx. PLN 290 million will be paid to farmers from the special purpose reserve of the state budget as a refund of part of the agricultural tax for 2024.
The Ministry of Agriculture announced on April 4 this year a draft act on the refund of part of the agricultural tax for 2024 for consultation.
The proposed regulations are a response to one of the demands of farmers protesting since the beginning of this year.
What is this agricultural tax about?
According to current regulations, agricultural tax for the tax year is:
- from 1 conversion ha of land with an area exceeding 1 ha – the monetary equivalent of 2.5 q of rye,
- from 1 ha of land with an area of up to 1 ha – the monetary equivalent of 5 q of rye – calculated according to the average purchase price of rye for the 11 quarters preceding the quarter preceding the tax year.
The average purchase price of rye is determined on the basis of the announcement of the President of the Central Statistical Office, published in the Official Journal of the Republic of Poland “Monitor Polski”, by October 20 of the year preceding the fiscal year. Due to the fact that the Central Statistical Office announced for the 11 quarters preceding the fourth quarter of 2023 the price of rye by 21% higher than in the previous year – farmers were in great fear. Hence their demand to leave the amount of agricultural tax for 2024 at the 2023 level.
The Ministry of Agriculture agreed to this request and, after three months of analysis, finally presented a proposal for a specific solution.
– The business climate survey conducted by SGH in the first quarter of 2024 compared to the fourth quarter of 2023 shows that the value of the business climate index decreased by 1.7 points, to -24 points. Recorded in the first quarter of this year. decrease in this value is the result of a decline in the farm income ratio. The research on macroeconomic accounts in agriculture conducted by IERiGŻ – National Research Institute in Warsaw shows that in 2023, the value of agricultural production decreased compared to 2022, mainly as a result of a decrease in the value of cereal production and the value of milk production, while the value of intermediate consumption remained at the 2022 level with increasing costs of energy and plant protection products.In 2023, agricultural income decreased by 19% compared to 2022. The Central Statistical Office reports that in February 2024, the prices of basic agricultural products decreased by 0.2% compared to January 2024 and by 15.4% compared to the same period last year – we read in the justification to the presented Act on the refund of part of the agricultural tax for 2024.
How will the refund be calculated?
In the draft act on the refund of part of the agricultural tax for 2024 it is proposed to refund part of the agricultural tax in an amount constituting the product of the difference in the price adopted for calculating agricultural tax in 2024 and adopted in 2023 and the number of conversion hectares specified in the tax order or tax declaration.
The tax refund will be made in the form of offsetting the part of the agricultural tax due for payment of the fourth installment of the agricultural tax, which is due by November 15, 2024, or in the form of a refund of part of the agricultural tax paid in full by the date of submission of the application, which refund will be made without unnecessary delay. corpse.
– The submitted bill will result in expenditure from the state budget in 2024 in the amount of PLN 292.9 million, including PLN 2.9 million for local government units for the implementation of a commissioned task, 1% of the amounts paid. The aid will be provided from the special purpose reserve of the state budget. The financial effects were determined on the basis of data from the Ministry of Finance – explains the Ministry of Agriculture in its justification.
And added:
– The proposed act should contribute to improving the competitiveness of farms by reducing the costs of agricultural production.
The project assumes that the collection of refund applications will be carried out by commune/city offices, they will also check the correctness of the data in the applications and then prepare requests for payments to voivodeship offices. Voivodes will apply to the Minister of Finance for decisions increasing the budget for the payment of aid. Applications will be subject to the approval procedure by the Minister of Agriculture and Rural Development.
Voivodes will transfer the funds received to municipalities for the payment of aid. After disbursing the funds, commune offices will prepare reports accounting for the completed task.
The provisions of the act are to enter into force 14 days from the date of announcement. BUT – after the adoption of the draft act by the Council of Ministers, the draft will be notified to the European Commission.
And this may take some time.
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