Effective 1 January 2013, VAT levied on primary agricultural production will be the standard 20%, as compared to 8% at present. However the remaining 12 percentage points will be refunded from the State Budget, Info-Prim Neo reports. Finance Minister Veaceslav Negruta said the measure will not affect farmers as the difference will be refunded within 45 days. Further, fiscal administration procedures will become more simple and distortions in the imposition system will be avoided. The measure particularly upset sugar producers and the National Confederation of Employers' Organizations. “These measures of fiscal and customs policy promoted by the government aim to introduce clear rules and ensure fiscal equity for all taxpayers. We are often asked, why is VAT reduced for sugar, why not for sunflower, for constructions or for transport? And we should not expect that the imposition of the standard VAT will lead to a rise in sugar prices. The price is formed by demand and supply”, stated the minister. It is also expected that VAT on natural and liquefied gas will also increase from 6% to 8%. This is estimated to produce an extra 90 million lei in Budget revenues.