Experts say that the government scheme that reimburses VAT for agricultural raw materials is unapplicable.
“How can you coordinate all activities of a considerable amount of farms when farms are not treated as businesses. Farmers have no money and we tell them to buy expensive inputs. This strategy doesn’t make farmers interested”, declared Bahri Musabelliu, dean of the Agricultural Economy Faculty.
Musabelliu says that the original variant of the law, which excludes the raw materials from VAT, was a better solution for farmers.
“Farmers in rural la areas might have many problems, but a basic problem is the lack of cash in a given moment. Agriculture is not like industry that processes a raw material tonight and sends it to the market tomorrow”, Musabelliu declared.
According to him, this measure should be followed with a series of other interventions that help the agricultural sector. In the beginning of April, the Parliament passed a law that excluded raw materials from the 20% VAT. But one day before the law entered in act, the government replaced it with a scheme that aims to compensate farmers only for the VAT he has paid when buying raw materials.
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