New VAT rate for farm products may compromise 2009 success, producers

The introduction of a new VAT share for farm products and, in particular, for sugar, raises the risk of compromising the success registered in 2009 in agri-food policies. This was the topic of a discussion between sugar producers and Parliament Speaker Marian Lupu. The Speaker promised them that the problem will be discussed among the Parliamentary groups and in the relevant Parliamentary Commission, reports Info-Prim Neo. Sugar and sugar beet producers demanded that the VAT rate is left at 8%, as it presently is. Increasing the tax, according to the producers, will favor increases in sugar prices, will diminish the competitiveness of local production and will lead to the degradation of a branch that is crucial to the national agricultural sector. Marian Lupu stated on the matter that until the Parliament did not examine this set of bills, there is still time to reach a consensus, which would assure Budget accumulation and necessary investments in agriculture, as well as the keeping old jobs and creation of new ones, along with the extension of the fiscal base. Further, Marian Lupu said that issue in the customs and fiscal administration cannot simply be solved through mechanic increases in taxes, but it is also important to identify a mutually favorable solution.