OREANDA-NEWS. May 11, 2012. This is stipulated by the fiscal policy for 2013 drawn by the Ministry of Finance and presented for agitation. The increase of VAT from 8% to 20% is planned to be compensated by direct state subsidies.

This measure is aimed at preventing distortion of the general system of taxation, simplifying fiscal administration and support of farmers.

The lowered VAT rate of 8% is applied on the first stage of the agricultural production only, namely primary production. Processing of the agricultural products is levied with 20% VAT and its deliveries levies with 8%.