New proposals for VAT compensation in agriculture - MPs: It leaves out a wide category of farmers
The government's proposed scheme to compensate farmers by 10% has sparked discussions in the Economy Committee, because it is considered incomplete and not comprehensive, leaving out those farmers who do not sell their produce to collectors but show it in other forms. For this reason, it has been proposed that this category be included in this scheme.
Enno Bozdo, DP MP
"The amendments first relate to the introduction into this scheme of two important groups that do not benefit from the compensation scheme. I propose that Article 1, points 1 and 3, be reformulated. Agricultural producers who are self-invoiced by VAT subjects; agricultural producers who are VAT subjects and issue sales invoices for products sold. An important formalized part of the market and these do not benefit today. Agricultural producers who are self-invoiced by small businesses but are not subject to VAT. I did not see dairies and these should be included."
Endrit Yzeiraj, Deputy Minister of Finance
"The proposal is serious, professional and we have discussed it. You have also had this discussion with the minister. Our position is that the scheme will remain, which is because we are in the process of approximation with EU directives and as we are, we can easily approximate them. Currently, exemptions from the scheme or groups are the only ones that we intend to achieve with this type of compensation. And at a moment of integration we can review it. We have taken the proposal seriously into consideration but we have stuck to this decision."
But for the socialist MP, this type of scheme will have consequences for farmers' pockets or increase the prices of agricultural products.
Erion Braçe, SP MP
"In addition to the things that were proposed. You know that agricultural markets have been created in every city where farmers sell, not collectors. Who is the government, that you who produce and go out and sell in the Lushnja market and do not receive compensation. For what reason do you say that compensation is not received? I do not give you compensation, you say that you did not take it to a collector. Legal market in Lushnja, in Fier, Divjaka, Korca, etc. If I, the importer, leave customs at the same value as the farmer in Albania, any processor comes out with a loss and is uninterested in domestic production and will go to import. This scheme will increase the pressure on the collector. The pressure of the collector's compensation scheme will lead to the importer. Either we will lower the price to the farmer or it will increase the price in the domestic market and to the processors. If you come here and say we will stay with the law that we brought and we do not reflect it, it is a big problem."
The previous reimbursement scheme for farmers brought numerous problems, which led the government to change it.
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