Crop and livestock disease insurance contracts could be exempted
With the government proposing to tax insurance on all assets and the Ministry of Agriculture (MAA) asking to exempt insurance contracts for crops, livestock diseases and agricultural machinery, the Finance Minister says the Seimas should take a political decision on the matter.
However, Rimantas Šadžius thinks that crop and livestock disease insurance contracts could be exempted, but does not agree to exempt machinery insurance.
„The issue to be discussed is the exemption of crop and livestock disease insurance contracts (BNS). If MPs think that this would be a compromise with farmers... This is a political decision," Šadžius told the Seimas Committee on Budget and Finance on Tuesday.
„There is one technique that is more equal than another technique“, – the minister added.
„These insurances are very sensitive because the insurance premium is compensated (50% – BNS) by the state funds“, – the ministry's representative said at the committee's meeting
The levy would reduce the willingness of the agricultural sector to take out insurance, she said, and „the government would have to compensate farmers more for losses due to animal diseases and frost“.
„We are lagging behind and need to catch up with the best practices of other countries“, – he told the committee.„We cannot overdo it here because we are lagging behind compared to other countries. And the positive trend that has been happening recently with crop insurance could be reversed," Puidokas argued.
The tax reform package being considered by the Parliament envisages that all non-life insurance contracts, except for third party liability insurance for private cars, would be taxed at a rate of 10 per cent.
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