The period during which economic agents operating in the field of agriculture will benefit from reimbursement of the value added tax (VAT) is extended by one year. According to a draft law adopted by Parliament after giving it two readings, the reimbursement will also be made in the course of 2024, IPN reports.

Economic agents whose activity represents 95% of one or more agricultural activities will benefit from VAT refund. It goes to the cultivation of plants from among permanent and nonpermanent crops, cultivation of plants for propagation, animal husbandry, activities in mixed farms, activities auxiliary to agriculture and postharvest activities.

Agricultural producers who suffered losses as a result of the embargo imposed by the Russian Federation on the import of crop production from the Republic of Moldova will also benefit from reimbursement.

The bill says that there was a substantial increase in input costs for the 2023 agricultural year and the decrease in prices for the main cereal products affected farmers’ capacity to pay and get ready for the new agricultural season.

According to estimates, about 700 agricultural producers will benefit from VAT refund and about 285 million lei will be allocated from budgetary sources for the purpose.