VAT on beet sugar remains 8% in 2012

The VAT on beet sugar will be maintained at the level of 8% in 2012. The decision was taken as a result of discussions, including with the IMF mission, and is aimed at stimulating the development of the area, said Minister of Finance Veaceslav Negruta. Initially, the draft budgetary-fiscal policy for next year envisioned switching over to the standard VAT of 20%, Info-Prim Neo reports. “In order to compensate for the loss of budget incomes of about 100 million lei that could not be collected because this concession was maintained, there will be introduced an excise duty on the gas used by units of transport. This will help establish equity between the drivers who fuel their cars with gas and those who fuel them with gasoline and diesel oil as the latter pay more into the Road Fund. Everyone will be put in equal conditions when this excise duty is introduced,” said Veaceslav Negruta. The minister also said that the mechanism for refunding the VAT on investments made from January 1, 2012 in the country’s settlements, including the municipalities of Chisinau and Balti, will be extended. The investments made in buildings and cars are an exception. According to the minister, this fiscal measure will contribute to larger foreign and internal investments and to the creation of new workplaces. The exemption from paying VAT on fixed means transferred to the companies’ registered capital by December 31, 2012 will be also maintained. There will be introduced a mechanism allowing using the refunded VAT to settle the future debts of the taxpayers to the national public budget. Currently, the given amounts are used to clear only definite debts to the budget.