Farmers are unhappy with the proposed 50% increase in the VAT rate on cereals and oilseed crops. Agricultural producers are threatening to bring their machinery onto the streets if the provision is not removed from the draft budgetary and fiscal policy before it is put to a second reading vote.
Representatives of the Farmers’ Power Association’s council said they recently consulted with “hundreds of farmers across the country” and conveyed their concerns to the authorities. According to the association, farmers view the proposed measure as “unjustified, discriminatory and disastrous,” particularly amid the sharp rise in prices for agricultural inputs.
“Agricultural producers are puzzled and outraged and are asking how it is possible to suddenly increase the tax burden on a sector that has been the most affected by natural disasters over the past five years and has received only minimal state funding,” the association’s representatives said.
They also pointed out that EU countries in Central and Southern Europe have VAT rates for agriculture ranging between 5% and 11%. At the same time, farmers in those countries receive direct payments ranging from €200 to €500 per hectare in subsidies.
“Farmers believe that MPs who vote to increase the VAT rate to 12% will thereby support the discrimination and bankruptcy of micro, small and medium-sized farmers in the grain and oilseed sector,” the association said.
Farmers are also unhappy with the proposed increase in income tax for peasant households, as well as higher excise duties on diesel fuel, in the absence of a mechanism to reimburse these costs to agricultural producers.
The Farmers’ Power Association said it will participate in all public consultations on the 2027 fiscal policy draft, is calling for a special debate on VAT, and plans to hold further discussions with farmers and government representatives over the coming week.
Farmers warned that if “all consultations do not produce a positive result,” the association will organize a protest on the day the fiscal policy is put to a second reading. This could be followed by a series of demonstrations involving agricultural machinery and equipment.
Representatives of the Cabinet of Ministers have not yet commented on the farmers’ announcement.