Ukraine is considering eliminating the simplified taxation system for farmers. This system allows agricultural enterprises to pay a single tax, greatly simplifies accounting and reduces tax pressure. The abolition of this possibility could lead to serious complications in the work of farmers.

Dmytro Kokhan, Deputy Chairman of the Ukrainian Agri Council (UAC), emphasized this for the AgroPolit publication:

"Today, 90% of all land (about 20 million hectares) is cultivated by single tax payers (the so-called agricultural tax). Only 2 million are cultivated by taxpayers operating under the general taxation system."

According to him, the abolition of the simplified system will lead to an increase in tax control and inspections of farmers.

"While everyone under the general taxation system pays income tax, single tax payers pay only a single tax (a fixed amount of -1-1.5% of the non-profit tax per hectare). That is, being in the 4th taxation group, a farmer has to pay a single tax, regardless of whether he has a profit or not. I do not perceive the abolition of the single tax as a serious threat. There is such a threat because there are such provisions in the National Revenue Strategy of the Ministry of Finance. However, this is a long-term perspective. If it is implemented, it will definitely affect farmers, because it is not only a matter of simplifying accounting, but also increasing problems in terms of tax control and income tax audits. This is one of the most difficult issues that businesses complain about. All these inspections will automatically move to farmers, because they will have to calculate their profits (some of them are tax deductible, some are not), which causes problems for business. Now you have to pay the 4th group of tax and continue working," the expert said.

The UAC calls for a balanced approach to solve this issue, taking into account the specifics of agricultural enterprises.