About 63.5% of taxes paid for the production of biomass-based fuel are VAT

While producing biomass-based fuel, around 63.5% of taxes stand for VAT. Other 20.25% are intended for social and medical insurances, and 7.95% - tax on income.

These figures are included in „Analysis of taxation system’s impact upon biomass-based fuel producers”, presented by Viorel Dandara, director of Priminfo-Grup during the National Bio-energetic Forum.

According to the author of the analysis, the Peasants’ household is the most advantageous legal-organisational form for developing such type of activity. The tax on income for Peasants’ households represents 7%.

„On the other hand, the legal-organisational form Limited Liability Company would be more appropriate for this sector, provided that the businessperson intends to develop and extend this activity”, Viorel Dandara declared.

Dandara claims the present taxation system does not contain fiscal facilities targeted at the stimulation of the economic development of biomass-based fuel producers, as they are being taxed on general principles.

„Among other recommendations, we suggest the application of zero quota for VAT for sale of biomass-based fuel or, as an alternative solution, the reduced 8% quota, as well as provision of exemption from paying VAT for equipment and technique intended for biomass-based fuel production”, Viorel Dandara concluded.