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In Moldova, the VAT refund period for agricultural producers will be extended.

In Moldova, the VAT refund period for agricultural producers will be extended.

In particular, this is provided for by a corresponding amendment to the Law on the VAT Refund Program for Agricultural Producers, the introduction of which was approved by the Parliamentary Commission on Agriculture and Food Industry at a meeting on Wednesday. The proposed amendments are aimed at extending by 12 months the period during which economic agents operating in the agricultural sector will be able to benefit from value added tax (VAT) refunds. The bill was developed to mitigate the negative impact of rising prices for raw materials and international logistics on economic agents in the agriculture and food industry, as well as a sharp reduction in purchase prices for agricultural products on international markets. “Production costs have increased significantly in the 2023 agricultural year, and inflation caused by rising energy prices has also increased labor costs. In addition, as the volume of grain supplies from Ukraine increases, prices for basic grain products fall, which directly affects the solvency of farmers in preparation for the new agricultural season. At the moment, there are many situations where farmers have become insolvent due to low prices for agricultural products,” said Alexandr Trubca, the author of the legislative initiative, Chairman of the Commission on Agriculture and Food Industry. It is expected that about 700 economic agents working in the agricultural sector will benefit from the VAT refund, and payments from the budget will amount to about 285 million lei. The legislative initiative will be proposed for approval at the plenary session of parliament in the first reading. // 20.12.2023 — InfoMarket

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