The German Government on Thursday, dropped part of its plans to cut agricultural subsidies in the face of massive protests from farmers.

Contrary to the initial plans, a discount on the vehicle tax for agricultural machinery would be maintained, Chancellor Olaf Scholz’s spokesman Steffen Hebestreit said in a statement.

Meanwhile, tax breaks on fuel used by the same vehicles would not be scrapped completely but reduced progressively, Hebestreit said.

The move was agreed in light of new information on the state of the government’s finances and “in order to avoid the sometimes considerable bureaucratic effort for the companies affected”, he added.


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