To prevent such a scenario, the association of fruit producers and exporters—representing more than three hundred fruit growers, processors, and traders—submitted a document to the Ministry of Finance and the Parliamentary Committee on Economy, a document outlining “Moldova Fruct’s” position on fiscal reform.
Among the proposals included in the submission, the“MoldovaFruct”administrationconsiders the following to be top priorities:
- Maintaining the reduced VAT rate of 8% for crop production (including fruit growing) and livestock products in their natural state, as well as for critically important agricultural resources and means of production. A similar practice is in place in many European countries: Italy—differentiated rates of 4% and 5%; France—5.5% and 2.1%; Poland—5%; and others.
- Recognition and release of “historical VAT” accumulated as a result of large-scale investments during the 2022–2026 period by expanding the right to a refund of these funds.
- Maintaining the VAT exemption on imports of specialized agricultural machinery and equipment, as well as fixed assets contributed to the authorized capital.
- Maintaining the BASS compensation mechanism (personal social contributions, 6% rate, Act No. 489/1999) as a key factor in agricultural stability.
- Protection and simplification of seasonal agricultural activities by exempting daily laborers from CAS payments (21% rate) and allowing a full (100%) deduction for food and transportation expenses.
- Full (100%) reimbursement of the excise tax on diesel fuel used in agricultural work and harvest logistics.
- Revision of the 3% limit on services provided by independent contractors and elimination of the automatic taxation of accounting errors as dividends.
- Limits on property taxes for agricultural real estate—post-harvest infrastructure: warehouses, industrial cold storage facilities, and packing houses.
- Elimination of fines for logistical and technical violations at customs involving perishable goods (fresh fruit) to prevent border blockages.
Focus on growth and friendliness
The “Moldova Fruits” “strongly advocates for a fiscal policy focused on growth and non-discrimination,” as well as one that takes into account climate risks and the pronounced seasonal nature of the agri-food sector of Moldova’s economy.
The association considers it unacceptable to offset the budget deficit at the expense of a vulnerable sector that operates “in the open air” and strives to remain competitive both domestically and internationally.
