Speaker promises solutions for farmers

Speaker Igor Grosu says the authorities are preparing a solution that will meet the expectations of farmers dissatisfied with the tax reform. According to him, the main objective is to stop the accumulation of VAT debts and to introduce a mechanism for monthly tax refunds.

Asked about the discontent expressed by farmers regarding the tax changes, Igor Grosu stated that the authorities will soon come up with a solution, which he says is even “better than what the farmers requested.”

“Our response will exceed expectations,” he said.

According to Grosu, one of the biggest problems faced by farmers is the long‑term accumulation of VAT debts.

“The first thing we need to do is stop the long‑term accumulation of VAT debts. There are 11 billion lei in total, of which around 2 billion are in agriculture. If we do not stop this accumulation, it is pointless to talk about rates of 8%, 20% or other percentages. They won’t help,” the Speaker declared.

He specified that the solution proposed by the authorities involves both paying off the accumulated arrears and introducing a mechanism under which VAT would be refunded monthly to farmers.

“We have to pay the debts and, importantly, refund the VAT on a monthly basis. This is the objective. Once VAT has accumulated in the account, it must be refunded every month,” Grosu explained.

The head of the legislature said that this solution was identified following discussions with representatives of the farmers and urged them to show patience until all technical details are finalized.

“The solution was proposed and identified during the discussion I had with the farmers in my office. I have kept my word and I respectfully ask them to have a little patience, to let us make all the clarifications and not to create discomfort for citizens. We will find solutions together, through dialogue,” Grosu said.

According to the Speaker, most of the farmers who took part in the talks reacted positively to the authorities’ proposal.

“At least the reaction of the majority of farmers was positive. They liked the idea,” he concluded.

Farmers are threatening to resume protests because of the changes proposed in the budget and tax policy. In a statement published on July 2, the “Farmers’ Force” Association accused the Government of failing to present, by the promised deadline, its position on maintaining the reduced 8% VAT rate in the agricultural sector.

The organization has given the authorities a new deadline, until the end of this week, to come up with an official decision. Otherwise, or if the Government insists on applying the standard VAT rate to agricultural output, farmers warn they will resume nationwide protests in various forms, even though the harvesting season has already begun. Farmers argue that the increased tax burden would have a severe impact on agricultural producers, particularly on micro, small, and medium‑sized enterprises.

President of the Republic of Moldova Maia Sandu believes the tax reform is necessary, but that the Government should take more time to analyze the proposals and criticisms before approving the final version. Asked about the discontent caused by the draft tax reform and the calls from some segments of society to withdraw or rethink the initiative, the head of state said that there are important elements that must be preserved, as well as provisions that need to be revised.

The tax reform proposed by the Government of the Republic of Moldova for 2027 is currently in the stage of public consultations and has generated intense debates, especially regarding the unification of the VAT rate and its impact on sectors such as agriculture, medicines, and energy resources.

The main proposed measures include: - reducing personal income tax from 12% to 7% for annual incomes of up to one million lei and introducing a 15% rate for incomes exceeding this threshold; - applying a zero rate to reinvested corporate profits; - standardizing VAT at 20%, eliminating reduced rates, and introducing a rapid, automated VAT refund mechanism; - transforming the personal tax allowance into a direct monthly payment for families with children; - extending the self‑employment (freelance) regime and capping certain local taxes.

Several business organizations and representatives of farmers have requested that some provisions of the draft be revised, in particular those regarding the VAT applied to certain products and services. At the same time, the authorities have announced that the project remains open to changes following consultations.