The land tax for 2024 will be covered with the VAT accumulated in farmers' accounts. This is provided in a draft law that was approved by the Cabinet on Wednesday, IPN reports.

"The Cabinet supports the payment of the land tax for 2024 too with the VAT accumulated by agricultural producers. I say for 2024 too because this provision was applied for 2022 and 2023," said Dina Roșca, secretary general of the Ministry of Finance.

Bill sponsor, MP Alexandr Trubca, said the draft law comes to improve the situation created in the agricultural sector following the decapitalization of farmers as a result of the multiple crises that affected the sector in the last three years – the logistics crisis, the fertilizer crisis, the drought of the summer of 2024.

"Given that the land tax was paid last year, the reimbursed financial resources will represent an influx of liquidity for farmers. The total amount of the influx is estimated at about 50 million lei," reads the draft law.

Thus, in order to remedy the difficult situation faced by farmers, the bill suggests expanding the basis for calculating the amount that is to be refunded with the amount of the land tax for 2024 so that this could be repaid with the VAT accumulated in farmers' accounts.