The farmers remained with a significant dose of dissatisfaction after the July 6 meeting of the special commission for working out the package of legislative amendments in support of the farmers. Alexandru Slusari, chairman of the Union of Agricultural Producers Association of Moldova, said that even if the bill providing for the exemption of farmers from paying the income tax was finalized today, the agricultural producers are not fully satisfied as the agriculture subsidization fund wasn’t increased, IPN reports.
“Regretfully, we are forced to accept the situation created as a result of the deprecation of the Moldovan leu. In this situation, which was created mainly artificially, we are told that the budget is tight. We understand this, but the farmers do not bear the blame for the actions or inaction of the state authorities,” said Alexandru Slusari. According to him, the authorities could identify possibilities for covering a part of the exaggerated costs incurred by the farmers and a more profound approach is needed.
Next week, the Union’s Board will hold a meeting to discuss the commission’s activity and its results. Afterward, they will make a decision whether to resume the protests or not, stated Alexandru Slusari.
Acting Minister of Finance Anatol Arapu said given that the EU and the IMF stopped providing financing and due to other reasons too, the agriculture subsidization fund cannot be increased. A rise is possible only if a new agreement is signed to resume the provision of financing from abroad. Another solution is to amend the state budget and redirect a part of the resources from other areas.
The MPs suggest setting up a supervisory board involving farmers that would monitor the allocation of funds to agriculture, including for national projects in agriculture, instituting a zero income tax for farmers from January 1, 2015 for three consecutive fiscal periods, on condition that the profit is reinvested in agriculture, and instituting a VAT of 8% for all the agricultural products.
A new meeting of the commission was set for July 7, when there will be discussed the bills concerning the creation of a profitable lending mechanism for farmers and the oil prices formation methodology.
