05/03/2003 
Sales tax pay off? - A comment by Franz Meyer zu Holte
And now, finally, the German Finance Minister tries to get money out of agriculture, the ass that supposedly rains gold coins.
Long since has the flat rate on sales tax been a thorn in the side of some financial politicians, who regard it as sort of costly subsidisation of the farmers.
The tax rates which were now decided to be raised on agricultural primary products, such as productive livestock and feedstuff, do finally force the farmers to say good-bye to flat rates.
And - seeing the poor profit margin in animal breeding as well - the result of it is a zero balance for the Finance Minister and a boom at the tax consultants' offices, quite apart from additional work to be done at the tax authorities.
Even in the past, the livestock farmers had only little advantage from the sales tax options, and this only during years where prices were high.
According to the balance, the general 9 % tax rate very often couldn't even compensate for a 16 % tax raised on expenses for newly built stables, for the repair of existing stables, for the veterinarians' bills, etc.
Now many pig farmers ask themselves:
So, if this whole matter does not bring in measurable taxation revenue, but rather loads of frustration and additional work to be done, there must be other reasons for imposing these measures on agriculture. Would it be socialist aspirations to justice? Or simply revenge taken on a seemingly privileged section of the population?
Long since has the flat rate on sales tax been a thorn in the side of some financial politicians, who regard it as sort of costly subsidisation of the farmers.
The tax rates which were now decided to be raised on agricultural primary products, such as productive livestock and feedstuff, do finally force the farmers to say good-bye to flat rates.
And - seeing the poor profit margin in animal breeding as well - the result of it is a zero balance for the Finance Minister and a boom at the tax consultants' offices, quite apart from additional work to be done at the tax authorities.
Even in the past, the livestock farmers had only little advantage from the sales tax options, and this only during years where prices were high.
According to the balance, the general 9 % tax rate very often couldn't even compensate for a 16 % tax raised on expenses for newly built stables, for the repair of existing stables, for the veterinarians' bills, etc.
Now many pig farmers ask themselves:
Why, at all, should I go on with agricultural pig farming?The equation with commercial livestock farming, which was created by the new rules, will most probably have consequences for the tenancy market. There will be fresh impetus for the structural changes resulting from the farmers' feeling that additional bureaucracy caused by regular sales tax accounting will be the straw that breaks the camel's back.
So, if this whole matter does not bring in measurable taxation revenue, but rather loads of frustration and additional work to be done, there must be other reasons for imposing these measures on agriculture. Would it be socialist aspirations to justice? Or simply revenge taken on a seemingly privileged section of the population?
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