German Bundestag approves controversial diesel subsidy cuts

German Bundestag approves controversial diesel subsidy cuts
# 02 February 2024 16:10 (UTC +04:00)

The German lower house of parliament, or Bundestag, approved the controversial rolling back of tax relief for diesel use by the German agricultural industry on Friday as part of the government's spending plans, APA reports citing Deutsche Welle.

This proposal has angered German farmers, leading to nationwide protests in recent weeks. In Berlin, for example, some 10,000 farmers recently clogged the streets with their tractors, urging the government reverse its plans on tax diesel subsidies.

The budget financing law was put forward by the current governing coalition of the center-left Social Democratic Party (SPD), environmentalist Greens and business-focused Free Democratic Party (FDP).

Other measures apart of the law passed Friday include higher air traffic taxes and new rules on financial support for families.

In order for the law to be enacted, it will need to be approved by the Bundesrat, which represents Germany's 16 federal states. German Farmers' Association chief Joachim Rukwied suggested Thursday that the Bundesrat could put a stop to the law.

Later on Friday, the Bundestag also voted in favor of a 2024 budget after much delay.

The budget of around €477 billion ($519 billion) will include €39 billion in new borrowing.

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