Zero VAT will be put on primary agricultural products

The VAT of 8% will be maintained on the own animal products in natural form and on deliveries of own phytosanitary and horticulture products performed by economic entities and agricultural producers. A legislative amendment to this effect was approved by the Government, Info-Prim Neo reports. The same bill says a zero VAT tax will be put on the primary agricultural products supplied on the home market at a price lower than their cost. Another amendment refers to the regulation of the import of fodder for animals and birds by introducing a zero customs duty on the given produce instead of the current tax of 10%, given that this type of food is not produced in Moldova. Minister of Finance Veaceslav Negruta said that these amendments are aimed at stimulating the agricultural producers and agricultural sector in general, which is important for Moldova’s economy, but is highly exposed to risks caused by weather and climate change. During the examination of the bill, Prime Minister Vlad Filat said such amendments are needed in order to remove the misunderstandings and tensions among groups of producers, such as the meat producers. He repeatedly asked that the bills on entrepreneurial activity be consulted with the economic entities.

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