Moldova's news
Moldova Ministry of Finance assured that the planned increase in vat for agricultural products from 8% to 20% will benefit farmers
This was announced by Finance Minister Veaceslav Negruta, speaking at the National Radio and expressing the hope that farmers in the long term will appreciate these measures, as they are positive about the measures taken by the present authorities over the past 2 years. Finance Minister said that after applying of the 20 percent VAT rate on agricultural products, since 2013, farmers receive a refund from the budget in the amount of 12%, which means maintaining a de facto rate of 8%. Return the difference of VAT will be implemented in 30 days, and for violation of terms of payments will be provided fines and penalties.
Minister of Finance noted that, at the same time, the transition to collecting 20-percent VAT on agricultural products, is carried out to improve the administration system in agriculture, to exclude from agricultural business numerous intermediaries, phantom firms, those standing behind the farmers, and profiting at their expense, extorting money, which will be forced to close their schemes and leave. Reimbursement of the difference in VAT will be implemented on the basis of documents. Veaceslav Negruta said that the accumulation of additional funds in the budget would allow the authorities to increase the Fund for subsidies in agriculture.
The Minister of Finance said that this week the Ministry of Finance tries to hold a constructive dialogue at the negotiating table with representatives of agricultural businesses that are going to protest against the increase of VAT. Veaceslav Negruta hoped that the department will be able to convince the farmers with the arguments that the measures taken by the authorities will not have a negative impact on them, and farmers will abandon protest and will focus on harvesting.
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