“Farmers flock to Paris.” “Farmers don’t take off.” Confrontation between farmers and the authorities has caused a lot of ink to flow over the past week. There are 80 blocking points in at least as many departments, “unheard of”. The reason for this dissatisfaction is (among other things) the government’s desire to close the GNR tax loophole. But what exactly are we talking about?

GNR, “red diesel”, is for certain professionals

Off-highway diesel (GNR) is a type of diesel fuel intended for certain special vehicles, including professionals in agriculture, construction, forestry, rivers and other industries. It has many properties in common with conventional diesel, it can even be used in conventional diesel engines. But, taking advantage of tax advantages compared to a classic diesel, The state regulates its use by putting a red pigment on it to be able to track it and eventually to fine drivers who do not have the right to use it. Hence his nickname, besides “red diesel”. It is approved for agricultural machinery, for example tractors, combine harvesters, heavy trucks, generators and construction equipment Example. Until now, it has enjoyed tax benefits: unlike diesel fuel, which is available at stations, GNR paid only two taxes: VAT and TICPE (tax on domestic energy consumption).

Favorable taxation…but not for long

Yes, “was”, because in September 2023, the Minister of Economy Bruno Le Maire announced end this tax loophole from 2024, for agricultural machinery and construction machinery (this measure does not apply to carriers). Specifically, 3.86 cents per liter in 2023 (for farmers only), TICPE increased by 2.85 cents per liter on 1^Er Januaryand will thus increase every year until 2030, where the Government expects a GNR taxation at the level of 23.81 cents per liter. Of course, from the outside, this increase of less than 3 cents seems insignificant to us, especially when compared to diesel tax for motorists which is 61 cents! But RNG users have a much greater need for fuel to run their vehicles, machines and tools. Moving on to their turnover, this increase in TICPE therefore further reduces their operating costs.

For Bruno Le Maire, this promotion is necessary “change our brown taxation that encourages fossil fuel consumption to taxation that promotes green investment.” Thus, the blocking of farmers has been suspended after the statements of Prime Minister Gabriel Attalwhich has to declare emergency measures…

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