The government partially supported the package of amendments on business support, while supplementing it with new proposals on VAT and excise tax refunds on diesel fuel for farmers
As noted in the Cabinet's conclusion, the bill provides for changes to the Tax Code, the Customs Code, the law on public procurement, the law on consumer credit agreements, the law on the state social insurance system, and a number of other regulatory acts. It aims to optimize public procurement procedures, increase transparency, and introduce more proportionate mechanisms for sanctioning and protection in the areas of taxation, law enforcement, and credit. The government has proposed adding a number of new provisions to the draft. In particular, the issue concerns clarifying the procedure for accounting for social contributions of independent entrepreneurs, expanding access for women independent entrepreneurs to maternity benefits, granting independent entrepreneurs the right to a number of social insurance payments, extending the VAT refund program for agricultural producers until the end of 2026, and repealing the law on special taxation of services in the HoReCa sector. In particular, it is proposed to extend the VAT refund period until December 2026 and to simplify the excise tax refund procedures. As specified by the Minister of Finance, Andrian Gavrilita, a draft government resolution is being promoted at the same time, providing for a 100% refund of excise duty on diesel fuel used in the spring agricultural campaign. This measure will reduce pressure on prices and support agricultural producers. “In the future, we hope to bring the excise tax refund in agriculture to 90% starting next year and make the VAT refund mechanism work on a permanent basis, not just temporarily and urgently,” said Finance Minister Andrian Gavrilita. Other proposals from the Ministry of Finance include the possibility of releasing excisable goods from free economic zones that are ceasing operations into free circulation without paying excise duty, provided that they are placed in a tax warehouse, as well as extending the period for the application of certain tax rules from 2025 to 2026. At the same time, the government made a number of comments on the tax section of the legislative initiative. The government's conclusion notes that certain proposals related to the adjustment of income tax returns and the possible retroactive application of new rules could create administrative and budgetary risks and violate the principles of tax system stability and equal treatment of taxpayers. At the same time, the Cabinet of Ministers proposed to adjust the provisions concerning the VAT regime for medical devices, noting that the application of a preferential VAT rate did not provide the expected reduction in prices, since the prices of such goods are not regulated by the state and trade margins are not limited. The government proposed to consider amendments concerning the application of the final customs destination regime and the introduction of customs duty exemptions as part of the preparation of the tax and customs policy for 2027, taking into account their economic and budgetary implications. With regard to the regulation of consumer lending, the Cabinet of Ministers supported the need to strengthen the protection of entrepreneurs, but pointed out that the approach to protecting individual consumers and entrepreneurs should be differentiated. In addition, the government objected to the removal of a number of restrictions on the total cost of credit, stressing that the current rules were introduced to protect individual borrowers from excessive debt and abuse by creditors. The bill, taking into account the government's proposals, is to be approved by parliament. // 11.03.2026 — InfoMarket.
