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A taxpayer inquired whether subsidised diesel could be used in tractors and motor graders for tasks such as earthmoving or constructing feeding areas. The DGT ruled that if the machinery is authorised to travel on public roads, subsidised diesel may only be used for agriculture, livestock, or forestry, thereby excluding the aforementioned activities.
This ruling clarifies that the tax benefit for diesel is strictly limited to specific agricultural and forestry sectors, preventing its use for general construction or earthmoving activities even when using agricultural machinery.
The tax team reviews your specific situation.
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