The Official State Gazette has today published the order of the Ministry of Finance and Public Function to reduce the Net Yield rates and the general reduction applicable in 2023 in the system of objective estimation of the Personal Income Tax (IRPF), the so-called system of modules, for farmers and ranchers.
This order includes the proposal of the Ministry of Agriculture, Fisheries and Food (MAPA) to reduce these indices and takes into account the incidence of drought and other exceptional circumstances that affected the profitability of many agricultural and livestock farms during 2023.
With the publication of this order, the Government continues to comply with the measures agreed to give support to farmers and ranchers, by establishing a generalized reduction of 15% in net yield, to which is added the reduction of between 30% and 80% in the sectors most affected by climate adversity, and the maintenance of the reductions for the purchase of agricultural diesel (35%) and fertilizers (15%).
The order establishes an overall reduction in net yield of 15% to which the approximately 800,000 farmers and ranchers who are taxed by the module system will be eligible. Certain sectors also benefit from specific reductions, which are 80% for chestnuts, 50% for cereals, legumes, olive groves and beekeeping, and 30% for wine grapes and extensive livestock sectors.
It is estimated that all the reductions contemplated in the order published today represent a reduction in the tax base of the order of 1.75 billion euros.
The order allows that this year also the declarants in objective agrarian estimate of the IRPF may reduce the previous net yield by 35% for the purchase of agricultural diesel, and 15% for the purchase of fertilizers.
In addition, reductions in the correction rates for feed purchased from third parties and for irrigated crops using electrical energy are maintained. In particular, the rate applicable to livestock activities feeding livestock with feed and other products purchased from third parties is set at 0.5, provided that they represent more than 50% of the amount of food consumed, and applies to both intensive and extensive livestock sectors. The corrective rate for irrigated land crops using electric power is reduced to 0.75.
In La Rioja farmers and livestock farmers can benefit from the reductions established at national level, which are the following:
Agricultural sectors:
- Cereals from 0.26 to 0.13
- Legumes from 0.26 to 0.13
- Nuts: Chestnut from 0.26 to 0.05
- Olive products from 0.26 to 0.13
- Grape for vinification with D.O. from 0.32 to 0.22
- Grape for vinification without D.O. from 0.26 to 0.18
Livestock sectors:
- Cattle breeding extensive from 0.26 to 0.18
- Beef extensive from 0.13 to 0.09
- Meat sheep extensive from 0.13 to 0.09
- Meat goat extensive from 0.13 to 0.09
- Pork of extensive meat from 0.13 to 0.09
- Extensive breeding pig from 0.26 to 0.18
In addition, additional reductions were made in certain areas and crops:
- Cebada and Triticale, in 82 municipalities with a greater reduction than the national one, reaching 65% (from 0.26 to 0.09).
- Oilseeds: Colza, in 145 municipalities with variable reductions from 50% to 80% (92 municipalities from 0.32 to 0.16 and 53 municipalities from 0.32 to 0.06)
- Grain peas in 145 municipalities, 53 of them with reductions to 80% (from 0.26 to 0.05)
- Broccoli and Cauliflower in 2 municipalities
- Peach, Nectarine and Cherry in 3 municipalities, and Plum in another one.
- Apple and Pear in a municipality.
All of these reductions may mean that La Rioja will see a reduction in the tax base of the claimants under the system of objective agricultural estimation of some 37 million euros, which will benefit some 11,000 farmers and livestock farmers.