Skopje, 10th July 2014 (MIA) – Yesterday, Parliament of the Republic of Macedonia, within the eighth session, determined the need for adopting the modifications and amendments to the Law on VAT, envisaging reduction of the Value Added Tax rate from 18% to 5% for baby products, school supplies, fodder, fodder additives and livestock.

The Law, as Deputy Prime Minister and Minister of Finance Zoran Stavreski said, contains significant amendment to the end of supporting the living standard of the citizens of the Republic of Macedonia, especially to young families having school-age children or babies, as well as support to farmers and cattle breeders, mainly, as response to one of their long-standing request.

– It is a matter of Law, proposing VAT reduction from 18% to 5% for three categories of products, those being: Fodder, fodder additives and livestock. The second type of products include all baby products and the third one are school supplies the children use, bag, rucksack, pencils, pens, notebooks, small coloured pencils and everything related thereto. The expenditures of the families and cattle breeders will be reduced, which we believe it is the best and most direct possible manner of supporting young families having school-age children, families with several children will especially feel the benefits therefrom since they will save several thousand denars per month, Stavreski said.

Families with newborn baby will feel the benefits when buying crib, baby stroller and everything they use for babies.

– And finally cattle breeders, all those engaged in farmer production, as well as companies dealing with processing of milk and milky products and meat will be able to realize the production with smaller start-up costs as a result of the reduction of VAT on fodder and livestock turnover.

All this, as he stressed, is aimed at increasing competitiveness of Macedonian agriculture and Macedonian stock-breeders.

– Given the direct benefits for large number of citizens of the Republic of Macedonia, I believe this Law will be supported by the Members of the Parliament, he said.

Fiscal implications that will be caused by this legal solution will amount to Denar 380 million on annual basis. Modifications and amendments to the Law will enter into force in ten or so days when the Law is published in the Official Gazette.

During the afternoon session, the Parliament confirmed the need for adopting the proposed amendments to the laws for one-off writing off of debts of citizens, Insurance Supervision Law, Law on Foreign Exchange Inspection, Law on Financial Companies and Law on Registering Cash Payments.

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