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Moldovan government will compensate small and medium agribusinesses for up to 100% of the cost of excise duty on diesel fuel.

Moldovan government will compensate small and medium agribusinesses for up to 100% of the cost of excise duty on diesel fuel.

According to the press service of the government, this was announced by Prime Minister Natalia Gavrilita during a meeting with agrarians and representatives of farmers' associations. Thus, large agricultural producers will receive compensation of 30% or 894 lei per ton, and small and medium enterprises will be compensated up to 100% of the excise cost - up to 2,980 lei per ton. Excise tax compensation will be paid retroactively, according to invoices, starting from January 1; this compensation will be received by about 14 thousand enterprises. In total, 277 million lei will be allocated to compensate excise duties to small, medium and large producers. Natalia Gavrilita noted that agriculture remains a priority, as evidenced by the actions taken so far by the government. "This government supports farmers. It was very clear when we increased the Agricultural Subsidy Fund by 60%. Depending on the budget revenues and the resources we manage to mobilize from external partners, we will continue this policy of supporting farmers," Gavrilita assured. During the discussions, the parties discussed a number of issues that require government involvement, and expressed their intention to continue the dialogue to identify new support mechanisms in the interests of the agricultural business. It is worth noting that despite the talks with the head of government, on June 21, the Forta Fermierilor (Farmers' Power) Association organized a protest action in some areas of the country. The agrarians are demanding the reimbursement of the full amount of excise duties on diesel fuel purchased in 2022 and a simplified reimbursement mechanism; a partial reimbursement of expenditures on fertilizers and plant protection means; an exclusion of cartel collusion in the oil products market and limitation of trade markups for wholesale of diesel fuel and unblocking of wheat exports. // 21.06.2022 – InfoMarket

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