Exemption of imported grain and flour from VAT eliminated

Exemption of imported grain and flour from VAT eliminated
# 11 July 2011 15:32 (UTC +04:00)
According to APA-Economics, the Cabinet of Ministers has changed the decision on “list of goods imported and exempted from VAT”.

According to new decision, the imported grain and flour will be attracted to VAT, from July 10, 2011.

Note that, Cabinet of Ministers has decided to exempt the grain and flour from VAT until August 1, 2011. Now, this period was reduced to July 10 taking the opinions of Ministries of Economic Development, Finance, Agriculture and Emergency Situations into consideration.

Exempting of grain and flour from VAT caused the sharp increase of import of these products from abroad. According to information of State Customs Committee, compared to previous year, during the first 5 months of this year, wheat import rose 50%, flour import increased by 74 times. Department chief of Agriculture Ministry Sabir Valiyev told APA that the new decision was made in order to maintain domestic market, protect interests of local grain producers and encourage them to grain production. That is, attracting of the imported goods to VAT will cause the increase of need for local grain. Besides, Valiyev added that new decision would not cause the price rise of bread: “This decision will not cause the price rise of bread. Because production of local grain is enough”.
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THE OPERATION IS BEING PERFORMED