Obligation to pay standard TAV could generate a financial crisis in agriculture

The Republican Union of the Agricultural Producers Associations “UniAgroProtect” attentions about a possible financial crisis in agriculture during June-August period, caused by the compulsoriness of paying the standard TAV when delivering agricultural production. According to the “UniAgroProtect” secretary, Alexandru Slusari, the possibility of a general crisis is generated by the fact that the biggest agricultural sells start in June-August with cereals. In this period, states Slusari, the producers, besides the compulsoriness of paying a 20% VAT, must also pay the first share of the land tax and 10% for the rent and after paying all these taxes the farmers will have a deficit of financial resources, which will make more difficult the prepares for the autumn works and for purchasing fuel. The representative of “UniAgroProtect” says that this year is the first after 9 years when the agricultural producers are obliged to pay the standard TAV rate. Although the state included 100 million lei subventions for supporting the agricultural producers who pay the standard TAV, the paying process might last a month. Slusari states that “UniAgroProtect” will monitor the process and will propose changes to the fiscal legislation in the case the forecasts regarding a possible financial crisis will be confirmed. According to the quoted source, the Union will propose the state to calculate TAV at the standard rate, but without raising the tax. By now, according to official information from May 19, the state reimbursed 3.5 million lei to 69 agricultural producers who presented the information on the deliveries performed in 2006.