The EC allows farmers to opt out of colouring the DD

A regulation requiring the use of dyed diesel fuel for agricultural work will come into force on October 30. The association “Farmers' Council” (ZSA) has repeatedly stated that such a decision will negatively affect farmers' activities – the price of diesel fuel will increase, and additional investments will have to be made to store diesel fuel separately from excise fuel, which will result in an increase in the cost of production.

On Monday, October 26, the ZSA received an official response from the European Commission's Tax and Customs Union, confirming the ZSA's position on the abolition of diesel fuel coloring. The conclusion explains that it is also possible to leave diesel fuel intended for agricultural work uncolored. The state may also request the possibility of applying a 0 (zero) excise duty rate to diesel fuel used in agricultural work. This is in contrast to the 50 EUR/t currently set in Latvia. In the ZSA's view, the most effective way is the system that existed in Latvia until 2009, which provides for farmers to purchase uncolored diesel fuel with the full excise duty rate. Accordingly, the state may partially or fully refund the excise duty paid to the farmer.

Juris Lazdiņš, Chairman of the Farmers' Parliament, believes that the entry into force of the amendments could cause serious losses to the Latvian agricultural sector: “Any European regulation that we, as a member state, have to implement must be evaluated very seriously so that the implementation process and result do not significantly harm any of the sectors of the national economy. The implementation of regulations must not worsen the competitiveness of either entrepreneurs or the country. The current situation is a clear example of how ill-considered implementation of a regulation leads to incorrect implementation of regulatory enactments. Currently, unfounded requirements have been imposed on rural entrepreneurs, compliance with which will cause great losses. In addition, we have received information from members that, due to technical reasons, it will not be possible to purchase dyed diesel fuel at certain gas stations. This means that agricultural work, for example, for preparing fodder - harvesting corn, must stop.”

Based on the initiative of the Ministry of Finance, decisions on the coloring of diesel fuel were made at the end of 2014.

The government cites the European Commission's position as the reason for introducing the dyed diesel fuel system, which we were unable to read in the response we received!