Tax blow for agricultural sector will undermine the food security of Ukraine – Miroshnichenko

The abolition of the VAT special regime for agriculture proposed in the draft tax reform will weaken the export position of Ukrainian agricultural sector.

This was stated by a deputy of the “Samopomich” faction, Ivan Miroshnichenko.

“This is a real threat to the food security of the state, especially to the livestock sector. I doubt these tax innovations will be supported in the parliament without a thorough professional discussion,” said the deputy.

He says that according to various estimates, in case of introduction of the new tax rules the investment attractiveness of agriculture will decrease by 30%.

“The special regime abolition will make redundant 10% of employees of the agricultural sector. And this is almost 100 thousand people. The payroll fund in the industry will decrease by more than 1.3 billion hryvnias which will significantly reduce the tax revenues,” said Miroshnichenko.

He also noted that the Agricultural Committee of the Parliament unanimously stood for preventing the abolition of the VAT special regime for agricultural producers and for a simplified system of income taxation.

“Our position is well known to the President, the Prime Minister, the Chairman of the Parliament, and the heads of the factions. Despite this, the draft law on tax liberalization provides for the abolition of the VAT special regime in all the sectors except livestock farming. At the same time farmers are not provided with any compensators or effective instruments of state support,” said the parliamentarian.

Ivan Miroshnichenko
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Agricultural policy