Taxing Agricultural Machinery. A Case Study Of Romania

Abstract:

Romania has a significant potential in the agricultural sector, being one of the most important Europe Union states in terms of the agricultural area used, but it faces a real need to modernize agriculture in order to support the economic development process of the country. In the recent years, significant investments have been made on the renewal of the agricultural machinery fleet in Romania, many factors contributing to the modernization process. The renewal of the tractor park in the Romanian agriculture requires the acquisition and putting into operation of modern agricultural machinery. The objective of this paper is to analyze the current situation of the agricultural machinery park and to implement solutions to support farmers in the easier acquisition of high technology equipment. Exemption from tax on tractors and agricultural equipment could be a first step towards increasing agricultural performance.