Moldovan farmers warn of bankruptcies over proposed VAT hike

Farmers in Moldova are warning that a proposed increase in the Value Added Tax (VAT) rate for the agricultural sector from 8% to 12% could lead to mass bankruptcies among small producers. The association ‘Forța Fermierilor’ raised these concerns following discussions with the Ministry of Finance and the Ministry of Agriculture.

Association representatives expressed frustration, noting that the cereal sector is currently highly vulnerable after facing significant challenges over the last four years. They argued that the increase constitutes discrimination, as other agri-food products remain taxed at 8% while bread and oil are taxed at 12%. Alexandru Slusari, executive director of the association, stated that authorities have not provided sufficient explanations for the necessity of the hike.

Finance Minister Victoria Belous announced that a final decision regarding the agricultural VAT rates will be presented on August 21. She explained that the government is attempting to find a balance between maintaining tax rates and the need to increase budget revenues, noting that the state must find ways to support economic development while addressing fiscal requirements.