Legislation update

January 9, 12:20 Source: APK-Inform Views: 610

Ukraine: Verkhovna Rada returned VAT refund on grain exports

On December 19, 2013, the Verkhovna Rada of Ukraine voted in favor of accepting the draft law #3757 dd. 16.12.2013 with 240 votes, which since January 1, 2014, returned the VAT refund on the exports of grains and sunflower seed, reported the press-service of the Ukrainian Agrarian Confederation.

According to the explanatory note to the document, the main purpose of the draft law is to prevent of declining of revenues from corporate income tax and value added tax to the state budget of Ukraine.

Also, experts of the Ukrainian Agrarian Association noted that adoption by the Verkhovna Rada of the draft law #3757 will support Ukrainian grain producers, who already suffered significant losses due to the global fall of prices in 2013.

According to the announcement, after the entry into force of the draft law, the incomes of domestic agricultural producers on grain export operations will rise. The profitability of grain production will grow by 10-12%, as opposed to the current zero level.

At the same time, experts of the Ukrainian Agrarian Association noted that the number of intermediaries on the grain market will not grow, because only grain producers and the enterprises, which purchased grains directly from agrarians, will get the VAT refund on exports. Thus, the direct grain producers will receive rather fair price for their products.

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