Ministry of Economy wants to reduce VAT refund term

The Ministry of Economy wants to simplify the procedure and to reduce the term for refunding VAT to farmers, in relation to the draft law on fiscal and customs policy for 2013, approved by the Government. It introduces the standard VAT of 20% for agricultural production instead of the current 8% tax. The 12% difference will be refunded to farmers from the state budget income, Info-Prim Neo reports. Deputy Prime Minister and Minister of Economy Valeriu Lazar told the press that refunding the VAT in 45 days, as stipulated in the bill, could freeze the farmers’ much needed financial means. The Ministry of Economy proposes that the amount of interest for infringing the VAT refund deadline should be equivalent to the penalties for overdue payments to the budget. “The Ministry of Economy considers that VAT exemption shouldn’t be annulled, along with the customs duties on capital goods deposited in the social capital of companies. Challenges posed to national economy by external factors require measures to stimulate the investment processes, to revamp the industry and to develop trade. Maintaining this facility will contribute to a general boost to economic activity”, explained the official. The proposals of the Ministry of Economy include the annulment of pre-paid income taxes and measures meant to streamline foreign trade by simplifying and increasing the transparency of the customs system and strengthening customs administration, etc. These proposals will be submitted to the Parliament with the draft amendments to current legislation on fiscal and customs policy for 2013.