The Verkhovna Rada adopted the bill No. 7403-d, which abolishes the rule of non-reimbursement of VAT when exporting soybeans and rapeseed to producers who supply these crops abroad on their own, as a basis and in general.

Two hundred forty nine deputies voted for adoption of this bill in favor of the required minimum of 226 votes.

"The adoption of the draft law No. 7403-d is a" half-dimension ". Parliament has decided that the VAT will be reimbursed only to those who independently produce soy. This is unfair, because small farmers will not be able to form large ship soybeans for export. Big companies today have a double victory - they will be able to export their soy at world prices, and will buy the products of small farmers at reduced prices. On the other hand, average farmers will be able to export, so for them it is also a partial victory," said Mikhail Sokolov, deputy head of the Ukrainian Agricultural Council (UAC).

Together with the bill No. 7403-d, there was considered the document №7403-2. Fifteen regional councils, international institutions, a number of people's deputies and all major associations supported the draft law No. 7403-2. However, this bill did not gain enough votes in parliament. Only 110 people elected for its adoption.

Sokolov noted that as soon as the President of Ukraine Petro Poroshenko signs the approved bill No. 7403-d, and its norms are introduced into the Tax Code, the UAC will draft a bill according to which small farmers can unite in cooperatives and export oil through these associations, receiving VAT refunds.

"We do not understand why the parliament did not retain a refund of VAT at least for cooperatives that unite farmers. These are not international traders, it is an association of small farmers, which are now essentially locked inside the country," he added.

The UAC expresses its sincere gratitude to the people's deputies who have been protecting small and medium-sized farmers and have supported the bill No. 7403-2.

In particular, for the adoption of this bill, voted:

  •  40 people’s deputies from the "Petro Poroshenko Bloc" party
  • 17 from the "Samopomich" party
  • 11 from the "Volya Narodu" party
  • 9 from the "Batʹkivshchyna" party
  • 8 from the "Narodnyy Front" party
  • 2 from the “Radykalʹna partiya”
  • 1 from the “Opozytsiynyy blok”
  • 1 from the “Vidrodzhennya” party
  • 21 non-factional people’s deputies.

In the meantime, for the adoption of the Draft Law No. 7403-d, voted:

  • 93 people’s deputies from the "Petro Poroshenko Bloc" party
  • 63 from the "Narodnyy Front" party
  • 26 from the “Opozytsiynyy blok”
  • 11 from the "Samopomich" party
  • 11 from the “Vidrodzhennya” party
  • 10 from the "Volya Narodu" party
  • 9 from the "Batʹkivshchyna" party
  • 2 from the “Radykalʹna partiya”
  • 24 non-factional people’s deputies.

Note. Pursuant to the amendments to the Tax Code, which came into force on January 1, 2018, the export refund on soy will be canceled from September 1, 2018 to December 31, 2021, and on rape – from January 1, 2020 until December 31, 2021.

Non-reimbursement for the export of certain categories of goods is a manifestation of tax discrimination and a violation of the basic principle of the Tax Code of Ukraine regarding the equality of all payers before the law. In addition, this norm is also a gross violation of the commitments made by Ukraine in its accession to the WTO and the signing of the Association Agreement with the European Union.

However, the deputies ignored the requirements of agricultural producers to adopt a bill number 7403-2, which cancels the "oil amendments", for several months. As a result, farmers were forced to off traffic on the main highways for three times, arrange protest actions under the Parliament.

Tuesday, 22 May 2018

 

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