Consolidation of farmland stimulated through taxation system

The money earned by private individuals from the sale of farmland will not be taxes from 2010. The new norms are aimed at stimulating the consolidation of the agricultural land, Info-Prim Neo reports. Galina Spac, the head of the Direct Taxes Division of the State Main Tax Inspectorate, said the previous years the economic entities that bough farmland from private individuals deducted 5% of the sum that was to be paid to the land owners. “Thus, many small land owners did not hurry to sell their land even if they did not cultivate it because they were elderly. For their part, the legal entities were not interested in renting their land,” Spac said. Galina Spac stressed the move is designed to stimulate the consolidation of the agricultural land and avoid the numerous conflicts that appear meanwhile, especially as regards the position of the small plots, so as to develop agriculture using modern technologies. According to the Agency for Land Relations and Cadaster, the number of transactions with farmland rose 60 times during the last 10 years, while with other types of property – only 10 times.