Russia may face problems with seeds import
Russian agriculture may face difficulties with imports of seeds due to sanctions imposed by the European countries and the USA. Therefore the Ministry of Agriculture of Russia proposes to reduce the value-added tax (VAT) to zero on the sale of domestic seeds, said the head of the department Dmitry Patrushev.
“Amid the pressure of sanctions, we propose to change taxation and establish a zero VAT rate for the sale of all seeds of domestic selection,” said Dmitry Patrushev. “Currently, we are waiting for the approval of this position. Taking into account potential problems with the seeds imports, our proposal is likely to be supported.”
According to Fertilizer Daily, the share of imports in the structure of seed consumption, depending on the specific crop, can range from 50-90% or more. A zero VAT rate for the sale of seeds of Russian selection can give a powerful impetus to the development of domestic seed production.