The Government is in favor of restoring the VAT of 8% on products from phytotechny, horticulture and animal breeding in natural form sold on the home market, IPN reports.

Minister of Finance Anatol Arapu said the draft decision is based on a legislative initiative. The agricultural producers repeatedly asked restoring the VAT of 8%. According to them, the institution of the standard VAT of 20% on January 1, 2013 led to a lower competitiveness of their products compared with the imported ones.

By the same decision, the Government endorsed the restoration of the VAT of 8% on sugar.