OREANDA-NEWS. November 12, 2013. The ruling coalition has discussed this issue at the meeting on Friday. Its representatives noted that final decision in this regard will be taken after the completion of all assessments, thorough analysis of situation and consultations with IMF.

It should be noted that the Parliament of Moldova has registered a draft law providing reduction of VAT on agricultural products from 20% to 8%. This document will be considered by the deputies after the respective conclusion of the government.

Since January 1, 2013 standard 20% VAT rate instead of the previous VAT rate of 8% was introduced for agricultural producers of Moldova. It was planned to return 12% difference to the farmers within 30 days. At the same time, the farmers have criticized the return mechanism, stressing that it is complex, bureaucratic and contains risks.

The parliament has adopted the bill according to which 12 % of the 20 -percent VAT will remain at the special farmers’ accounts and the funds can be used by them for agricultural purpose only. However, the farmers stood for return of 8% VAT rate.