Ukrainian Agrarian Forum on behalf of its members (the Ukrainian Agricultural Council (UAC), the Agrarian Union of Ukraine, the Ukrainian Agribusiness Club, the Ukrainian Agrarian Confederation and the Ukrainian Association of Village and Settlement Councils) have sent an official request for the President of Ukraine Petro Poroshenko to sign bill No. 7403-d as soon as possible. This bill abolishes the non-reimbursement of VAT when exporting soybeans and rapeseed to producers who independently supply these crops abroad.

On May 22, 249 deputies voted for the adoption of the bill number 7403-d with a minimum of 226 votes. After that, on April 25, the document was signed by Speaker of the Parliament Andriy Parubius and sent to the President for signature.

"In case of non-signing of the adopted Law, farmers will lose about UAH 4.6 billion because of non-refund of VAT on soybean exports and UAH 3.9 billion because of non-refund of VAT when exporting fermented or rape seeds," the source said.

Agrarian associations noted that the preservation of "oil amendments" will lead to a sharp increase in the shadow market. The absence of VAT refunds will stimulate the purchase of soybeans and rape for "black cash" with subsequent exports, without compensation and without returning foreign currency earnings to the country.

Recall that according to the amendments to the Tax Code, which entered into force on January 1, 2018, the export tax refund for soybean will be canceled from September 1, 2018 to December 31, 2021, and for rapeseed – 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. 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 EU.

To restore justice, there was drafted a draft law No. 7403-2, supported by 15 regional councils, all major associations and a number of international institutions. However, this document faced a confrontation within the walls of the Verkhovna Rada itself and the profile tax committee. Due to the active position of agricultural producers, who, with the support of the UAC, three times blocked the key highways of the country and went on protest rallies under the tax committee of the Council and the parliament itself, deputies were forced to compromise. The Tax Committee recommended that the Council adopt the bill No. 7403-d, which was eventually supported by people's deputies.

Unfortunately, the return of VAT refunds to exporters only is only a partial solution to the "oil issue", since small farmers will not be able to form large batches of soy for export. However, it is a compromise option that can reduce multibillion-dollar losses by farmers.

As soon as the president signs the approved bill No. 7403-d, and its norms will be introduced into the Tax Code, the UAC will draft a bill according to which small farmers will be able to unite in cooperatives and export oil through these associations, receiving VAT refunds.