According to the law adopted on Thursday, December 22, 2011 VAT accrued by milk processors will be partially credited to the special account to
the State treasury for further direct payment as a compensation to the raw milk suppliers, the rest of these funds will be payable to the special fund
of the State Budget. Distribution of the VAT is also stated clearly in the law: 70% of accrued VAT sums to be credited to the special account, 30% -
to be payable to the State Budget in 2012; 40% and 60% in 2013; 50% and 50% in 2014 respectively. Chairman of Milkiland stated that this is a
positive change as it might slow down decrease in diary cows’ numbers, will help industrial milk production and will promote growing cattle in rural
areas.
 

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