The Ministry of Finance, Budget and European Affairs of the Government of the Canary Islands has reported that the refund of 99.9% of the special tax on petroleum-derived fuels will be extended to transporters, farmers and ranchers.
This action, which was approved on March 22 -retroactively to the first day of that month-, contemplates the increase of the tax refund from 68% -which already existed since 1986- to 99.9%, a fact that will be extended until June 30, 2023.
The signed order establishes that "the reasons that motivated the temporary extension of the application of the increase in the percentage of refund of the tax on professional gasoline used in hybrid electric vehicles and dual-fuel vehicles that are affected by the development of agricultural and transport activities; and professional diesel used in machinery, appliances and vehicles that are affected by the development of agricultural and transport activities, continue to exist."
38 million euros returned for 2023
Since the order was activated and until last October -latest data available- the Government has returned 37 million euros in total for the tax, while the forecast from October to June 2023 -based on an estimate based on real data- is close to 38 million euros.
In this sense, the responsible counselor of the area, Román Rodríguez, has indicated that "the calculations place the fiscal cost of the refund at about 75 million euros".
This order also allows professional transporters, farmers and ranchers not to pay taxes on the purchase of fuel, since, regardless of this refund, the IGIC rate to be applied is 0.
Since 1986, the Canarian Government has been refunding 68% to transporters, farmers and ranchers, a refund that now and until June, will be practically complete, thus eliminating a tax of 26.5 cents per liter in the case of gasoline and 22.2 cents in the case of diesel.
