Owing to the bill adopted by Parliament in final reading on April 11, by which the procedure for paying VAT on agricultural products is modified, the price of these products, especially of the sugar, will decrease and the national products will be more competitive than the imported ones, Democratic MP Adrian Candu, who is one of the authors of the bill, said, quoted by IPN.

He explained that the VAT on sugar will fall from 20% to 8% and such a move was necessary as the sales of sugar declined significantly after January 1. More than 80,000 tonnes of sugar were sold in 2012, while in the first three months of this year only 3,000 tonnes. “The rest of the sugar is exported because it cannot cope with the competition from the imported sugar, which is mainly smuggled,” said Candu.

Under the Democrats’ bill, the farmers will not pay VAT of 20%, but of 8%, while the rest of 12% will be used by the producers to grow crops and manufacture agricultural products. The VAT on sugar will be 8% not 20%.

“Thus, the price of sugar will decrease by 12% or over 2 lei per kilogram. The prices of other products will also diminish as the producers will no longer face shortages of funds,” stated the MP.

From January 1, 2013, the agricultural producers paid VAT of 20%, but were refunded 12% of it.