Maintaining of tax benefits to be the main negotiating point of the Ukrainian government with IMF - Ukrainian Agrarian Association
Maintaining of tax benefits should be the main negotiating point of the Ukrainian government in the dialogue with the International Monetary Fund, declared experts of Ukrainian Agrarian Association.
In spite of cardinal decrease of governmental expenses, in the current situation Ukraine needs foreign financing support. The new government of the country declared the readiness to make the required decisions, such as cardinal decreasing of governmental expenses, breaking down the number of administrators, canceling of unnecessary inspections and slowing of prise increasing for natural gas for the population.
But Ukrainian Agrarian Association calls the Government to remember about the economic interests of Ukraine. The advice list of the International Monetary Fund always is subject to negotiate. Due to functional Tax Code of Ukraine, special treatment of tax liability of the VAT for agricultural enterprises has effect up to the first of January 2018. The benefit showed its efficiency — the agro-industrial complex was the leader in Ukrainian economy.
Ukrainian Agrarian Association reminded that in contrast to the USA, EU and Russia, where direct subsidies on agriculture vary from 12% to 21% from add value, in Ukraine there are no programs of direct dotations from the budget of the country or insurance in low price for products.
So, due to estimations of specialized associations, if the Government will decide to strike down the tax benefits for agriculture enterprises, the losses will total nearly 19 bln UAH. Also the number of unprofitable agricultural enterprises will increase to 50% against 17-30%, and reduction of the general production of agricultural products will total 8-10%.
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