Friday, 03 March 2023 02:44

Agriculture is exempted from paying taxes on the purchase of seeds and inputs

Written by Evelyn Alas

With 79 votes, the deputies of the Legislative Assembly approved transitory provisions to exempt the Ministerio de Agricultura y Ganadería (MAG) from the payment of taxes on the Transferencia de Bienes Muebles y a la Prestación de Servicios (VAT) in the purchase of improved red bean seed, certified white corn seed, coffee plants and agricultural inputs and logistics contracting. 

This would make it possible to guarantee the coverage of the beneficiaries of the provision of agricultural products.

The decree will become effective on the same day of its publication in the Official Gazette and its effects will last until december 31, 2023.

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The Executive Branch, through the head of Agriculture, pointed out that the prices of agricultural inputs have increased due to the COVID-19 pandemic, the war between Russia and Ukraine and the logistics crisis in transportation costs.

For these reasons, special measures continue to be taken so that the Ministerio de Agricultura y Ganadería can acquire these inputs at adequate prices.

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The parliamentarians expressed that the approved measures are important for the State portfolio to have more funds to meet the demand for agricultural packages that increases every year.

Parliamentarian Jaime Orellana explained that in past administrations only a bag of seeds and fertilizers was delivered in the agricultural packages, but since 2022, other inputs such as treatments and foliar products have been included. 

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This is the second time that the deputies endorse the exoneration of taxes on the acquisition of basic grains and agricultural inputs to the Ministerio de Agricultura. Last year alone, the VAT exemption allowed this Ministry to save more than US$8 million.

 

Translated by: A.M