The current pesticide tax will be restructured so that the plant protection products most harmful to health and the environment are subject to the highest taxes, whilst less harmful plant protection products are subject to relatively lower taxes.
The differentiated tax on plant protection products will ensure that farmers have more of a financial incentive to use the plant protection products with the least load on the environment and/or health. Consideration will be taken of specialist and high-value crops to counteract outsourcing of the cultivation of specific crops to other countries.
The new tax system will be supplemented by a system which can be used by farmers while choosing which plant protection products to apply. A system by which they can quickly and easily determine which product has fewest side effects and should therefore be used in preference.
The new tax system will replace the previous tax on pesticides under which the same duty was applied to all products from a group (e.g. herbicides), irrespective of their various properties. Plant protection products have for several years been subject to ad valorem tax of 25 or 30 percent. Herbicides and fungicides are charged 25 percent and insecticides 35 percent.