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Agriculture : Daniel Chitoiu: the new Fiscal Code will be applied with February 1 2013
The New Fiscal Code which includes the amendment of the way to tax natural persons in agriculture, to be applied after approval starting with 1 February 2013 stated on Monday the minister of public finances at the end of a meeting with the social partners at the ministry of agriculture and rural development. “ The new modality is a simplification and a reduction of the taxing of natural people in agriculture. The new system taxes an annual net income norm, namely you take the expenditure out of the gross income by applying a tax of 15% and 5.5 percent for the contributions to the Health Fund. The new fiscal code which includes this taxing modality will be applied after approval, starting with 1 February 2013” Chitoiu said.
He mentioned that the income norm is calculated for the whole annual income, established on the basis of data and figures from MADR depending on the average income made on different categories of agricultural income.The ministry of finances said that the total sum obtained is 2% percentage at present as income on the turnover, as it is the present taxing for the commercial companies or those who get the land under supervision.
“I think that it is a measure for statement and payment much easy to use by the 670,000 agricultural workers, and they will become participants in the National Fund for Health. This system of taxing has the role to reduce evasion and fiscal fraud from the domain of agriculture, as we have presented a system of taxation reduced at half, and the modality to state and to pay is made by a fiscal agent at the APIA headquarters where they also take the tax out of the income under the form of subsidy” Chitoiu said.
In his turn, the minister of agriculture, Daniel Constantin stated that the change of the way to tax natural people guarantees not only a smaller tax but higher income for the budget, by the expansion of the taxing basis.
“The change of the way to tax the natural people will guarantee that the natural person, irrespective of the form and exploitation is taxed less than until now especially in the perspective, as we ensure higher income for the state budget through the expansion of the taxing basis, and thus we can go to the second phase, namely the reduction of the VAT for certain food products” the head MADR said.
In the new taxing system, the farmers who own under two ha are exempt from any tax. The minister explained that the farmers who have over two ha will pay only 96 lei per ha against 214 lei as they pay at present. For example, for potatoes, the old tax which was 5.5 plus 2 percent reached the level of 1,266 lei per ha, while the new proposal is 750 lei/ha. No category is taxed more, the taxing basis is increased for the natural persons, and the legal ones have the same conditions.