Government decided to cut the VAT from 20pct to 9pct for specific agricultural services

The government has decided in its Tuesday sitting to cut the VAT from 20pct to 9pct for fertilizers, seeds and specific agricultural services, with an estimate budget impact of 65.8 million lei in 2016, Public Finances Minister Anca Dragu said on Tuesday in a media briefing at the government. 

"This measure is compliant with the acquis in the field and might be a start to stimulating the people who operate in the agricultural sector, to increasing the level of access to agricultural goods and services, to easing new investments in agriculture, to unfolding in good conditions the investment programmes from European grants in agriculture. For 2016 we estimate a budget impact of approximately 65.8 million lei; in 2017 it would reach 190.9 million lei, and in 2018 - 203.3 million lei," she added. According to her, this measure is important to slash evasion in VAT and in agriculture.

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