OREANDA-NEWS.  January 14, 2013. The government of Moldova votes down the initiative of members of the Parliament to half a maximum possible rate of the agricultural land tax for 2012 for agricultural producers.

Cabinet ministers rejected the draft amendments to the Fiscal Code, drawn by a group of members of the Parliament. According to Deputy Finance Minister Victor Barbaneagra, who spoke at the sitting of the government, a rate of the land tax is established by local authorities as local budgets are approved and it can not be less than 505 of the maximum possible rate. Besides, local authorities can grant individuals and legal entities the exemption from the land tax or deferment if perennial plantations and crops suffered from calamities.

According to Victor Barbaneagra, the mid-term fiscal and customs policies stipulate creation of a fair system of taxation, based on fundamental principles of taxation and direct state backing within the Fund for Subsidizing Agriculture, which made up 400 mln. leis in 2012.

The Deputy Finance Minister stressed that passing the amendments would lead to a decline in revenues of the state budget. Under current conditions the agricultural sector may be effectively supported through use of already established mechanisms and sources, Cabinet ministers pointed out. Besides, in the future the single tax is planned to be introduced in the agriculture of Moldova.