Baptiste Morin / Photo credits: JEAN-MARC BARRERE / HANS LUCAS / HANS LUCAS VIA AFP 8:32 a.m., January 27, 2024

The Prime Minister announced on Friday evening the cancellation of the increase in the tax on non-road diesel (GNR), a fuel used for agricultural machinery. Its price per liter is lower than the fuel used by the general public thanks to a tax loophole which was to gradually disappear. This will ultimately not be the case.

The increase in the red tax, non-road diesel (GNR), used to run tractors, was at the heart of farmers' demands in recent days. Some farmers can consume up to 45 liters per hour, or 600 euros per day. The Prime Minister announced that he would remove the increase in the tax on non-road agricultural diesel, which was to increase gradually until 2030, thus meeting one of the main demands of farmers.

>> READ ALSO

- LIVE - Farmers' blockade: follow the evolution of the situation this Saturday

The tax was to increase gradually until 2030

Only four months ago, Bruno Le Maire and the FNSEA agreed on a reduction in the tax loophole on GNR. A niche that costs the State around 1.5 billion euros per year. There was no question of eliminating this advantage but of raising the level of taxation: today, GNR is 40% cheaper than diesel, and in 2030, it would have only been 25% cheaper.

The agreement specified that the savings made would be entirely returned to the agricultural world and it is on this argument that Gabriel Attal based himself to draw a line under this agreement: it does not satisfy the farmers and it does not bring anything back to the State. As a result, the tax loophole will not be reduced.

An automatic discount upon purchase from summer 2024

To benefit from part of the tax advantage on GNR, farmers must now request it in writing to obtain reimbursement, except that many give it up due to lack of time. Farmers can request reimbursement of around 15 cents per liter consumed. The Prime Minister announced that this discount will be made upon purchase from summer 2024.