Common tax in agriculture to be tested in three districts

The Ministry of Agriculture and Food Industry proposed piloting the common tax in agriculture in three districts in northern, central and southern Moldova from January 1, 2014. Minister Vasile Bumacov believes it is risky to implement this new taxation method all over the country at once. He said time is needed to assess this mechanism, IPN reports.

In a meeting of the Parliament’s commission on agriculture and food industry, Vasile Bumacov said the move is aimed at simplifying tax payment for farmers. “The idea is that we should have fewer tax collection bodies so that the farmers work in the fields rather than go to different state bodies to pay taxes. Besides, the agricultural producers want greater transparency and less corruption,” said the minister.

The common tax in agriculture will substitute six taxes, including the land tax, the realty tax, the income tax, the road tax, the tax on water and the local tax. Another three taxes will be paid separately by farmers. These are the value added tax, the social insurance contribution and the mandatory health insurance premium.

The relevant bill is to be discussed with the Ministry of Finance. Afterward, the commission on agriculture and food industry will pronounce on it.

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