Farmers’ Equipment to See 9% VAT Decrease in PLF 2027

The Draft Finance Law for 2027 proposes a significant fiscal measure designed to benefit the agricultural sector. This initiative includes a reduction in Value Added Tax (VAT) on various key equipment used by farmers, decreasing the rate from 19% to 9%. The proposal is presented as a step to consolidate national food security and alleviate financial burdens on agricultural operators.

Specifically, the planned revision targets essential equipment for modern market gardening and water-saving technologies. Article 49 of the Draft Finance Law for 2027 outlines this provision, amending and supplementing Article 23 of the Turnover Tax Code. The government's proposal aims to broaden the range of goods and inputs that qualify for the reduced 9% VAT rate, moving them from the standard 19% rate previously applied.

The legislative text's explanatory statement underscores a dual imperative: enhancing competitiveness and fostering productive independence within the agricultural domain. Beyond its direct fiscal impact, this orientation aligns with the country's broader environmental and industrial priorities, reflecting a commitment to modernizing farming practices and ensuring sustainable resource management.