OREANDA-NEWS. August 13, 2012. During press conference the head of department Vasile Bumacov said that the need to change the taxation system in agriculture has arisen with introduction of income tax and financial situation of farmers complication.

Ministry of Agriculture, in particular, proposes to introduce on January 1, 2013 a single (consolidated or agricultural) tax, which will replace more than 6 other taxes levied on farmers (income tax, land tax, real estate, road tax, etc. local taxes). At the same time, the payment of VAT, contributions to the funds of compulsory medical insurance and social security will remain unchanged. The Minister emphasized that in preparing the draft document takes into account the experience of neighbouring countries - Russia and Ukraine, where there is a single agricultural tax.

The size of single agricultural tax is not yet known. It is planned that it will vary depending on the level of soil fertility and profitability of agricultural production on owned plots of land to farmers. According to Vasile Bumacov, to ensure fairness in the application of single tax for various kinds of agricultural products (and value added) they will introduce different rates of tax calculation. For example, the amount of tax for producers of grain will be calculated on the basis of three lei ballohektar, sunflower and sugar beet - 3.5 lei per ballohektar, for perennial crops - 4 lei ballohektar.

He stressed that professional organizations have expressed different opinions about the number of factors: Uniagroprotect offers three coefficients, the Federation of Farmers insists that there were at least three. Vasile Bumacov also noted that the single tax in agriculture can be paid in two instalments – on September 30 and December 31 each year. According to him, with introduction of single agricultural tax total amount of taxes for farmers will not increase, and introduction of single agricultural tax will be beneficial for both farmers and the state.

However, he stressed that the farmers are unhappy not only for increase of tax burden but for frequent tax audits. Minister of Agriculture urged all stakeholders to participate in the discussion of the final document on introduction of the single tax.