Taxes in the sphere of agro-industrial complex

The fixed agricultural tax that replaced the other three – land, for the maintenance of housing stock and a single agricultural tax and has been in force in the republic since 2004, has been cancelled. Parliamentarians voted in the second final reading today in the course of the plenary session for government law-in-draft that abolishes the preferential tax regime for agricultural producers.

The deputies agreed with the opinion of the representatives of the Government: the law "On a fixed agricultural tax" has fulfilled its functions. The Parliament Speaker Alexander Korshunov recalled that the deputies voted for the introduction of a preferential fixed agricultural tax in order to reduce the tax burden on farmers and encourage entrepreneurs to work in the agricultural sector of the republic in 2004. So the parliamentarians expected to gradually reduce the amount of uncultivated agricultural land. Practice has shown that the method proved to be effective. State support has played a positive role in improving the performance of agricultural enterprises. The share of the agro-industrial complex in GDP increased, and there was an increase in the export of agricultural products. The law was extended for another 6 years in 2014 because there were still empty lands in Pridnestrovie, although its number has already decreased significantly.

Commenting on today's decision of parliamentarians the speaker added however that the state will continue to support agricultural producers. Thus, in addition to the fixed agricultural tax, the current legislation of the PMR provides benefits for those involved in the production, processing and sale of agricultural products in the republic, for producers in the agro-industrial complex with a full production cycle, who have a total revenue from the sale of crop, livestock, and fish farming products of their own production and sales of products is at least 80% of the total. Benefits are provided for manufacturers of food products, consumer goods, medicines in the first three years of operation. Parliamentarians noted that for organizations in the field of agriculture, the income tax rate is one of the lowest in the republic and amounts to 1.3%. Agriculture is one of the priority areas of development for the republic.

The document has been sent to the President for signature. It is planned that the law on the abolition of the fixed agricultural tax will come into force on January 1, 2023.