All basic food products used by the citizens daily are on the list of products that will be taxed at a preferential VAT rate of 5 percent. The list adopted Thursday by the Government contains more than 1.600 products and is being expanded with products such as digital textbooks and others. Wood pellets for heating are also on the list, said the Ministry of Finance in a press release, transmits MIA.
“In line with the decision adopted by the Government, the citizens will continue to buy lower tax rate products such as bread, white sugar, flour, sunflower oil, milk and cream, meat, eggs, cheese, fruit and vegetables, pasta, soups, ajvar, honey, salt, ketchup etc. The list is long and contains many products that the citizens use as part of their daily diet. It includes more than 1.600 products which have the lost preferential VAT rate,” said the Ministry.
On Thursday, in line with the adopted amendments to the Law on VAT, adopted a decision for the application of a preferential VAT rate of 10 percent on products that are consumed less, are treated as luxury products and don’t represent basic food products.
“This list includes products such as reindeer meat, salmon, blue cheese, tofu, eel, flaxseed, coconut and palm oil, caviar, shells, tropical fruit such as papaya, mango, avocado, etc.,” said the Finance Ministry.
According to the Ministry, the goal of the decisions is to protect the living standard of the citizens, as well as fairly tax products that aren’t a part of the basic diet. Additionally, said the Ministry, the decision aims to protect domestic production of food and support domestic companies.
