The parliament has adopted in third reading a Tax Code amendment excluding palm oil from the preferential VAT regime of 10% and introducing a VAT of 20% for this product.
At the moment, any vegetable oil is charged with a reduced VAT tariff of 10%.
Moreover, the parliament recommends that the government, when drafting amendments to the FY2019 Budget and shaping the Budget for next fiscal year, allocate the additional budgetary revenue resulting from the increased 20% palm oil import VAT rate for enhancing productivity of dairy cattle operations under the 2013-2025 state program for agriculture development and regulation of the agricultural product, commodity and food markets. The purpose is to prevent growth in consumer prices for essential foods.
Production of sunflower oil increased 9% from a year earlier