Govt. rejects idea of returning VAT to investments in rural localities

The Moldovan Government rejected a bill by parliamentarian Valeriu Cosarciuc on amending article 101 of the Tax Code, Info-Prim Neo reports. It provides for returning the Value Added Tax (VAT) to investments (costs) in rural localities, except for buildings and vehicles. The MP considers the VAT should be returned in the cases of purchasing “caterpillar tractors, wheeled tractors, both new and partially used”, because they are the most important means for a performing agriculture. In his rejection note, the Government mentions the objectives of the tax policy for 2009 were outlined through a decision by the Government on October 20, 2008, and they do not provide for expanding the scope of the law related to returning the VAT related to investments in rural localities. Moreover, the Government plans to decrease the number of economic areas where the VAT return procedure is enforced.