The difference of 12% resulting from the increase in the value added tax (VAT) in agriculture from 8% to 20% will remain in a special account of the farmers. A bill to this effect was adopted by Parliament in the first reading on March 21, IPN reports.

Bill author, Democratic MP Adrian Candu explained that the farmers until now paid a VAT of 20% and then the Government refunded 12% to them within 30 days. The money often reached the farmers with delay. Following last summer’s drought, the farmers risk remaining without resources.

Under the bill, the 12% will be kept in a special account. This money will be used only for farming works. The VAT in Ukraine is 17% and the Moldovan producers encounter difficulties in the competition against the imported agricultural products, said the MP.