{"id":236736,"date":"2005-11-16T12:57:00","date_gmt":"2005-11-16T12:57:00","guid":{"rendered":"http:\/\/new.moldova.org\/2005\/11\/16\/agriculture-ngos-threaten-with-protests-if-government-maintains-intention-to-introduce-20-percent-value-added-tax-6588-eng\/"},"modified":"2005-11-16T12:57:00","modified_gmt":"2005-11-16T12:57:00","slug":"agriculture-ngos-threaten-with-protests-if-government-maintains-intention-to-introduce-20-percent-value-added-tax-6588-eng","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/agriculture-ngos-threaten-with-protests-if-government-maintains-intention-to-introduce-20-percent-value-added-tax-6588-eng\/","title":{"rendered":"Agriculture NGOS threaten with protests, if government maintains intention to introduce 20-percent value-added tax"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Members of at least five non-governmental organisations working in agriculture sector threaten to hold protests starting November 26, if the executive does not give up the intention to introduce a 20-percent value-added tax for agricultural production. Under amendments to legislation, this tax will be introduced in 2006, and it will be returned later to farmers. <\/p>\n

If the authorities fail to give up this intention by November 21, thousands of farmers will protest, according to a statement signed by the Uniagroprotect Union of Associations of Agricultural Producers, Agroindsind National Federation of Agriculture Uni ons, National Federation of Agriculture Employers, Union of Sugar Producers and National Federation of Farmers. <\/p>\n

According to the statement that the signatories intend to deliver to President Vladimir Voronin, Speaker Marian Lupu and Premier Vasile Tarlev, the proposed model will be inefficient. "We accepted a 20-percent share after the chief of state has said that farmers must keep the VAT. However, we are surprised of the VAT redemption mechanism," Alexandru Slusari, executive director of the Federation of Agriculture Employers, stated to BASA. <\/p>\n

NGOs suggest that the VAT be calculated but not collected for its further distribution to businesses, while the executive opts for collection of the 20-percent tax and "redemption of this money within a couple of days." <\/p>\n

First Deputy Premier Zinaida Grecianii told a meeting with chiefs of district agricultural directorates on Monday, November 14, that the executive is looking for ways to return the VAT as soon as possible. "I hope to identify a model to pay off the VAT to farmers the next day," Grecianii noted. <\/p>\n

She underlined that the VAT record modality proposed by NGOs is unacceptable because a similar model applied in 1996 failed. <\/p>\n

The initiative to increase the VAT from 5 percent at present up to 20 percent starting January 1, 2006, is part of the state budget law for next year that the parliament has passed in two readings. The authorities hope to raise around 100 million lei in additional incomes from this tax. \/\/ BASA-Press<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>Members of at least five non-governmental organisations working in agriculture sector threaten to hold protests starting November 26, if the executive does not give up the intention to introduce a 20-<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-236736","post","type-post","status-publish","format-standard","hentry","category-economy"],"content_social_share":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Members of at least five non-governmental organisations working in agriculture sector threaten to hold protests starting November 26, if the executive does not give up the intention to introduce a 20-percent value-added tax for agricultural production. Under amendments to legislation, this tax will be introduced in 2006, and it will be returned later to farmers. <\/p>\n

If the authorities fail to give up this intention by November 21, thousands of farmers will protest, according to a statement signed by the Uniagroprotect Union of Associations of Agricultural Producers, Agroindsind National Federation of Agriculture Uni ons, National Federation of Agriculture Employers, Union of Sugar Producers and National Federation of Farmers. <\/p>\n

According to the statement that the signatories intend to deliver to President Vladimir Voronin, Speaker Marian Lupu and Premier Vasile Tarlev, the proposed model will be inefficient. "We accepted a 20-percent share after the chief of state has said that farmers must keep the VAT. However, we are surprised of the VAT redemption mechanism," Alexandru Slusari, executive director of the Federation of Agriculture Employers, stated to BASA. <\/p>\n

NGOs suggest that the VAT be calculated but not collected for its further distribution to businesses, while the executive opts for collection of the 20-percent tax and "redemption of this money within a couple of days." <\/p>\n

First Deputy Premier Zinaida Grecianii told a meeting with chiefs of district agricultural directorates on Monday, November 14, that the executive is looking for ways to return the VAT as soon as possible. "I hope to identify a model to pay off the VAT to farmers the next day," Grecianii noted. <\/p>\n

She underlined that the VAT record modality proposed by NGOs is unacceptable because a similar model applied in 1996 failed. <\/p>\n

The initiative to increase the VAT from 5 percent at present up to 20 percent starting January 1, 2006, is part of the state budget law for next year that the parliament has passed in two readings. The authorities hope to raise around 100 million lei in additional incomes from this tax. \/\/ BASA-Press<\/p>\n

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