No VAT will be imposed on the imported tractors, agricultural machinery and irrigation equipment. The Government approved relevant amendments to the Tax Code. The bill provides that only the producing economic entities will benefit from such a concession, IPN reports.

The amendments to the Tax Code by which the VAT exemption for tractors and agricultural machinery was abrogated came into force on April 24. Since then, a lot of economic entities have experienced difficulties. The imported agricultural machinery and tractors stay in customs posts because the producers do not have money to pay VAT on clearance.

The new bill is designed to improve the given situation.