Moldovan farmers push back against planned VAT hike to 20%

Moldova’s Forța Fermierilor association is set to meet with the parliamentary agriculture committee on April 1 to oppose a proposed increase in value-added tax (VAT) on agricultural products, according to Logos Press.

The meeting is scheduled for 14:00 local time, with the primary objective of preventing the VAT rate from being raised to 20%.

In addition to the VAT issue, farmers intend to raise several key demands during discussions with lawmakers. These include the establishment of a permanent mechanism for reimbursing excise duties on diesel fuel, the inclusion of the grain sector in the country’s Strategic Plan for Agricultural Policy (PSPA), and financial refinancing support for agricultural producers facing crisis conditions. They also plan to address measures aimed at protecting domestic producers within the local market.

The debate comes amid ongoing expert discussions about reforming Moldova’s VAT system in alignment with European Union recommendations. Analysts have proposed introducing a unified VAT rate applied throughout the entire production chain, from raw materials to finished goods. A compromise range of 12–14% has been identified as a potential middle ground, compared to the current system, which includes reduced rates as low as 8% or proposals to increase the rate to 20%.

By Tamilla Hasanova