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Agriculture: AgriMin says horizon of VAT cut on milk, vegetables and fruit to be known in September
Minister of Agriculture and Rural Development, Deputy Prime Minister Daniel Constantin, said on Thursday in Sibiu that the horizon of the tentative VAT cut on milk, vegetables and fruit will be known only in September, after the impact of the reduced VAT on bread is analyzed.
'Of course, we are currently considering cutting the VAT on several products, meat included. As Mr. Prime Minister said too, for meat the impact is slightly higher and therefore we need to conduct a more in-depth analysis to prevent coming up with additional taxes. But I want to tell you that we are close to completing an analysis on the reduction of VAT on vegetables, fruit and milk. We are also looking into matters in the meat sector and I hope we will be able to introduce this relief at least gradually,' said the Minister of Agriculture.
Constantin did not mention a precise deadline for the enforcement of the lower VAT on milk, vegetables and fruit.
'I do not want to risk giving a term because I am waiting to see the review on the VAT cut in the bread-making sector, on the entire production chain. This review will probably be ready in September and only then can I venture to forward a term,' added the AgriMin.
Reducing the VAT rate on milk, vegetables and fruit will reduce tax evasion, which is 'still quite high' in agriculture, Minister Daniel Constantin says.
'We will complete an analysis and see if the budget for 2014 or 2015 allows for the introduction of this measure I, in my capacity as Minister of Agriculture, am highly particular about, because apart from the help represented by a lower price, this will massively curb tax evasion. And, regrettably enough, in the sector of agriculture and in the food industry, tax evasion is still quite high,' said the Minister of Agriculture.
Minister of Agriculture Daniel Constantin participates on Thursday in Sibiu in the 'Meat & Milk' international conference.