Common tax to be imposed in agriculture

The Government approved a bill that institutes a common tax for agricultural producers. According to Minister of Agriculture and Food Industry Vasile Bumacov, the tax will be determined according to the ratio of 3.1 lei per grade-hectare, Info-Prim Neo reports. The common tax will include all the taxes that are paid currently by farmers, besides the VAT, the state social insurance contributions and the mandatory health insurance premiums. The procedure for refunding the VAT imposed on primary agricultural production will be modified. Starting with 2013, the VAT rate rose from 8% to 20%. After a number of discussions with representatives of associations of producers, it was decided that the 12% will remain in the accounts of agricultural enterprises. Earlier, this tax was transferred to the budget and then refunded to the producers within 30 days.