OREANDA-NEWS. April 29, 2011. The increase in the VAT on beet sugar from 8% to 20% will have negative consequences for the whole beet sugar industry of the country, - Alexandr Slusari. The Chairman of the Agricultural Producers Association Uniagroprotect Alexandr Slusari said it during the international conference “The Global Sugar Market: Risks and Prospects”.

According to him, the rise in the VAT on beet sugar by 12 p.p. proposed by the Ministry of Finance will become not only the additional burden for final consumers, but will also result in degradation of the whole agro-industrial complex of Moldova’s north regions, where over 15 thousand peoples are engaged in beet growing and sugar production. In opinion of the Uniagroprotect Chairman, the first year will end up with the 2.5 times reduction in the planted area and the rise in prices for sugar.

He also drew attention to the fact that validity of the safe-guard order, stipulating restriction of the raw sugar import to Moldova, will be over on August 1, 2011. “If presently prices for beet sugar and raw sugar in Moldova are about the same, the rise in the VAT on beet sugar and the end of the safe-guard order will result in the beet sugar’s lack of competitiveness”, he said. He urged the Ministry of Finance to take into consideration that the positive effect as 37-40 million leis of addition state budget incomes from the rise in the VAT rate on beet sugar will be accompanied by the economic losses of 200-250 million leis a year and a serious social damage.