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Association of Grain Growers Asks for VAT Preferences

Association of grain growers asks  to return   preferential mode of payment of VAT, as an exception for companies engaged in the import of grain and flour, which was abolished by the government a few months ago.

In particular, previously acted law provided for possibility of postponing VAT  for companies with a turnover of more than GEL 200 000 per year. It was canceled on July 1, 2014, respectively, grain grower have to pay VAT within 30 days after the import of products.

The Association asks the government to return preferential treatment for the companies operating in this sector, as an exception.

“The purpose of the changes was the improvement  of the provisions of importers  and local producers, but the country is dependent on imports of cereals. The Committee on Sector  Economy promised that law would  not apply  to our industry because of its strategic importance, but the law is valid. We intend to submit a request to the Parliament. Preferential taxation allows importers to create certain stocks, which allows  not to raise prices in the case of a sharp rise in grain prices on international markets. Because of the new VAT regime,  our reserves decreased by 20%, “- said the head of the Association Levan Silagava.

According to him, it is very important in an environment when  grain prices are expected to rise in the future.

“In order to  keep prices as much as possible, we must have great reserves, but to have more reserves, we need a delay in the payment of VAT,” – he  underlines.