BEFORE THE INCREASE IN TAXES.

Several agricultural organizations have approached the Ministry of Economy and Finance to request a five-point reduction in the tax modules of the agricultural sector., in the same way that it will do with the corporate tax for SMEs and the self-employed.

Last Saturday, the Council of Ministers approved a five-point reduction in corporate tax for those companies with less than 25 workers and who invoice a maximum of five million euros. All of this included within the General State Budget Bill for 2010.

The organizations justify the request by arguing that this sector generates employment in the rural world., as can be seen during this year's agricultural campaigns, in which it absorbs labor from other sectors in crisis, such as construction or hospitality.

Organizations also demand that, At the same time, the VAT rate will increase from 1 July of 2010, The same should be done with the VAT compensation that farmers and ranchers receive for the sale of their productions.. Since it represents an income for which they must pay taxes to the Public Treasury while the intermediary who acquires these productions can pass it on to their clients..

This request is supported by farmers and ranchers having to endure an increase in 2 points in the acquisition of inputs (when passing VAT 16% to the 18%), invoices that the farmer and rancher cannot pass on. So, The increase in VAT will mean a worrying increase in costs in the midst of the crisis.