Reducing the VAT rate in Russia on sunflower and corn seeds for sowing to 10%

Reducing the VAT rate on sunflower and corn seeds for sowing to 10% is a measure to support agricultural producers. Previously, seeds treated with disinfectants were subject to a higher VAT rate, since they were not intended for food and feed purposes. However, entrepreneurs expressed concern about this, since the possibility of consuming seeds exclusively for food was the main criterion for applying a preferential VAT rate of 10%.

The authors of the bill also noted that increasing the VAT rate on agricultural seeds to 20% could lead to an increase in the tax burden on agricultural producers, especially in the context of rising prices for energy resources, fuels and lubricants and agricultural machinery. This, in turn, can lead to reduced production and increased food costs.

Reducing the VAT rate on sunflower and corn seeds for sowing to 10% will help agricultural producers reduce the tax burden and remain competitive in the market. It could also help increase crop production and stabilize food prices.