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  • New rules for agricultural exports: risks and prospects
    Опубликовано: 2024-05-07 13:07:50

    The Verkhovna Rada of Ukraine is considering the possibility of setting the VAT rate at the level of 14% for the export of all types of agricultural products, with the exception of oil, nuts and honey. Such a proposal is contained in draft law No. 10168-2. However, the All-Ukrainian Agrarian Council (UNA) opposed this initiative, claiming that it could significantly harm the agricultural sector.

    In its statement published on Facebook, the VAR emphasized that such changes seriously threaten the conditions of the agricultural sector. They can lead to a decrease in purchase prices for agricultural products and loss of competitiveness of Ukrainian producers on the international market.

    "Retaining the 0% VAT rate for oil exports violates the principle of equality in the market, and the introduction of VAT export taxation at the rate of 14% has no logical explanation, other than the desire to create privileges for oil and nut producers," - say representatives of the VAR.

    Agrarians believe that the introduction of such changes may worsen the situation with the return of foreign exchange earnings. This may jeopardize the export opportunities of Ukrainian manufacturers and lead to difficulties in their activities.

    "If the idea of setting a 14% VAT is considered as an additional means of combating black exports, then it should either be extended to all agricultural exports, including oil, or applied only to those exporters who have non-return of foreign exchange earnings," - they emphasize VAR.

    Representatives of the agrarian industry call on people's deputies not to support the proposal to set the VAT rate at the level of 14% for agricultural products. They believe that this initiative can become an excessive burden for the agricultural sector and hinder its development.

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