There are many ways of helping the sector

The agricultural sector through the crisis more harsh and long decades is nothing new. And that it is true, evidenced by different support schemes in the sector have been on the tables from different administrations. But from Agricultors Joves i Ramaders de Catalunya (Jarc) would like to emphasise that there are many ways really help the agri-food sector, and sometimes are not so complicated to develop. Talking about the possibility of adopting the law of late payment which is currently working and VAT superreducido for the agricultural sector and related services.

JARC has claimed that the new default Act established the time limit for payment of the agri-food products, as well as a system of penalties for companies that do not implement, since it's a tool that can bring much liquidity to the sector and therefore ensure its viability and continuity. From the breeds sector claimed that the maximum period for fresh and perishable products is 30 days and 60 days for non-perishable, counting from the moment of delivery of the product and not from the emission of the invoice as proposed in the initial document.

From Jarc we ask that the debate of the law do not allow introducing no points to open the door for "the negotiation between the parties", that it not only rob the spirit of the law, but it would be a revolutionary tool for the sector.

Specifically on 19 February was presented by the joint group a proposition of law of amendments to the law on VAT so that all products and services related to the food chain by taxing at 4%. This request is at the moment to debate in Congress and was taken into consideration by agreement of all groups, except for the Socialist Group.

The law on VAT which is now in force identified two reduced rates. Those of higher social and cultural content, essential goods, taxed now with the super-reduced rate of 4%. With this type recorded goods such as bread, milk, cheese, eggs, vegetables, fruits, vegetables, etc. The truth is that it has no logic the type differentiation between eggs and milk, and between the meat and fish, because some are considered food commodities and others not, for the purposes of application of the tax.

The Joint Working Group requested that you apply a VAT superreducido in all those supplies of services carried out in favour of the owners of agricultural, forestry and livestock farms are necessary to the exercise of the activity, it is of great importance for the economic results of the operation.

Therefore, from Jarc we consider it very important that this proposition of law go ahead and pass all agricultural products and all the benefits of services provided to agricultural holdings, super-reduced VAT of 4% has been achieved, as this would be a stimulus for demand.

Often, the basket is conditional on a disposable income, that nothing is that whether carries VAT or not, already to who makes the purchase at home not can affect this tax, but it is a finalist taxthat is to say that the final consumer pays.

This VAT reduction would mean a way to stimulate demand, since it cheaper the cost of the product. Let us not forget that with the increase of VAT provided for this second half we moved from the 7 to 8%, and this will directly affect on the demand and, therefore, can be translated into pressure to the low prices of agricultural productsa situation that would be quite different if approved the amendment, and all agricultural products - even those who are still 7% - pass to have a super-reduced VAT of 4%.

The increase in the general VAT, that goes from 16 to 18 per cent from July 1, will also have a negative effect on the consumption of other products. Farmers who are in the system of objective estimation (modules) will also increased the VAT to be charged by their sales to be able to thus offset that not can be deducted from your purchases, from 9% to 10%. For many analysts the VAT in the agricultural sector has already been considered as one of the factors that has led to a decline in the agricultural income from the entrance of Spain in the EU. For this reason, we call from Jarc seriously consider of this modification, it may be very important in order to begin the recovery of the agricultural sector.