Date: May 29th 2010

European Commission announced the Romanian Ministry of Agriculture and Rural Development the decision on state aid for applying a rate of excise duty of eur 21 per 1000 litres for diesel used in agriculture.

After analyzing GD no. 408/2010 approving State aid granted for diesel used in agriculture, the Commission made no objection and decided that an agreed scheme is compatible with the internal market. However, in its assessment, the Commission found that the legislative act complies with “Community guidelines on state aid in the agriculture and forestry 2007-2013’ and that reducing the duty established by legislative act is intended to help facilitate the development of certain activities or regions economic, without trading conditions to an extent contrary to the common interest.

Following the opinion, GD no 408/2010 shall enter into force from Thursday, May 27th 2010. Agricultural diesel users, potential beneficiaries of the scheme should apply, at each supply with diesel sales tax documents (invoices) issued by providers on behalf of beneficiaries, the amounts purchased and used from May 27th 2010, to qualify for subsidy duty.

The entry into force of this decision of the Government, the duty shall be the equivalent in RON of eur 21 per 1000 litres, compared with rates from eur 293.215 per 1000 liters in 2010 and eur 309 per 1000 litres in 2012. State aid reimbursement form shall be applied yearly for a total of more than 700,646,000 litres of diesel. This amount is allocated among different sectors of primary production, based on average consumption per hectare for each task. The total budget provided for the three years of implementation of the scheme is to lei 3,050,000,000 (about eur 735.1 million).

Authority responsible for administration scheme is Paying and Intervention Agency for Agriculture (APIA) in center county / local. Recipients may submit requests for prior agreement for funding reimbursement, after publication in the Romanian Official Gazette of the Order of Minister.


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