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Fish farmers criticize elimination of caps on land tax and other local taxes


https://www.ipn.md/index.php/en/fish-farmers-criticize-elimination-of-caps-on-land-tax-and-7967_1095810.html

Fish farmers criticize the legal provisions by which the caps on the land tax and all the other local taxes were eliminated as from January 1. The circumstances create situations for acts of corruption, said representatives of the National Association of Fish Farmers of the Republic of Moldova, the Ungheni Association of Fish Producers, the Society of Hunters and Fishermen of Moldova and “Piscicola-Ivancea”.

In a news conference hosted by IPN, Victor Marahovschi, manager of “Piscicola-Ivancea” SRL, said the new provisions of Law No. 356/2022 enabled the local councils to limitlessly increase the tax rates on water surface (water mirror). Earlier, there was a fixed sum of 115 lei. “Imagine that in a village this rate is 115 lei, while in the neighboring villages it is 2,500 lei, 5,000 lei, 10,000 lei without any limitations,” exemplified Victor Marahovschi.

The manager of “Piscicola-Ivancea” said the new provisions do not ensure predictability and discourage investments in this activity. “At any moment, the tax rate can be increased. The size depends on the moods of the local administration when the annual budget is approved,” stated Victor Marahovschi.

The head of the National Association of Fish Farmers of the Republic of Moldova Gheorghe Gheorghiu referred also to the VAT rate. “Even if we are in agriculture, we pay a VAT rate of 20%, while the other sectors pay a rate of 8%. This is evident discrimination. In North Macedonia, for example, VAT on fish and all the agricultural crops is 5%. In Russia, it is 11%. In Romania, VAT on fish is 9%, while in Poland it is 0%. In those states, they think about pisciculture, while in our country they want to destroy it by through high taxes,” stated Gheorghe Gheorghiu.

Mihail Filimon, head of the Ungheni Association of Fish Producers, said the owners are obliged to maintain the ponds and to reinforce the hydro-technical constructions and they also have to pay royalties based on the right of superficies. Some of the provisions of Law No. 318 in the current form cannot be applied and, given the absence of legal enforcement instruments, in the near future they will generate tens of disputes that can be avoided by adjusting the legislation.

Note: IPN News Agency gives the right of reply to persons who consider they were touched by the news items produced based on statements of the organizers of the given news conference, including by facilitating the organization of another news conference in similar conditions.