Abstain from direct price interventions. B. Trade Policies State order system for agricultural products was abolished in late 1995. Tax on exports was eliminated in late 1994. Liberal export policy with no licensing for most agricultural products. Most agricultural products are traded on essentially private, informal markets.
Illegal rent seeking and bureaucracy seriously constrains domestic markets.
Ensure that all state agricultural procurement is executed on a competitive basis. Maintain low and uniform tariffs and no quantitative restrictions or taxes on exports. Improve physical and commercial infrastructure for export trade rather than introducing special incentive programs. Introduce provisions for bonded warehouses and duty drawbacks to promote exports. C. Taxation Credit for VAT payment for capital goods established in June 1995.