Agriculture minister says not realistic to reduce VAT now

Agriculture Minister Davor Romic said on Friday, after a theme session of the parliamentary committee for agriculture, that a decrease of Value Added Tax (VAT) on farm products was currently not realistic.

"At the moment that is not realistic because it was agreed in the government that this year there wouldn't be any changes to taxation policies," Romic told reporters following a marathon session about the situation with domestic dairy farmers during which participants said that one of the possible measures to improve the overall situation in agriculture was to reduce VAT.

Minister Romic said he is aware that the dairy sector is in a very difficult situation, however, he underlined that all mechanisms do not lie with his ministry but the entire cabinet.

We will work on connecting the ministry and all those participating in that process - farmers, producers, and traders, Romic said, noting that during the meeting the main problems were identified and that efforts would be made to resolve these.

Dairy farmers warned that the sector was on its knees and pointed the finger at the self-will of buyers, the falling price of milk and rapid increase in imports since Croatia joined the European Union.

Last update: Fri, 18/03/2016 - 15:14

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