Agricultural producers suggest modifying VAT refunding mechanism

The agricultural producers are not against increasing the VAT from 8% to 20%, by refunding then 12% from the state budget, but suggest that 8% of this sum should be paid into the budget, while the other 12% should remain for the economic entities working in agriculture. The proposal was formulated in a meeting with Speaker Marian Lupu, Info-Prim Neo reports. According to a communiqué from Parliament, UniAgroProtect head Alexandru Slusari said that the current VAT refunding mechanism will lead to the decapitalization of the agricultural sector, the bureaucratization of the procedure and the rise in the level of corruption. The participants in the meeting said a common tax should be introduced in agriculture and the Law on Oil Products Market should be amended so as to facilitate the agricultural producers’ work. Marian Lupu supported the idea of modifying the VAT refunding mechanism in agriculture. According to him, there are doubts that the institutional capacities of the fiscal authorities allow refunding the tax of 12% during 30 days. The Speaker also said that he is for a common tax in agriculture as it will be transparent and fair and will bring more incomes to the budget, if it is paid by all the agricultural producers. The meeting took place at the request of representatives of the National Union of Agricultural Producers Associations “UniAgroProtect”.