Today, the parliament in the second reading and in general voted for the bill №3656 with 255 votes. This bill reduces the VAT rate on some types of agricultural products from 20% to 14%.

In particular, the VAT rate is reduced for: whole milk; cattle, pigs; sheep, wheat, rye, barley, oats, corn, soybeans; flax, rapeseed, sunflower and other oilseeds; sugar beets.

It should be noted that the original version of the draft law №3656 also proposed to extend the VAT rate of 14% to transactions for the import of purebred breeding animals, which are currently generally exempt from VAT rate. However, preparing the draft law for the second reading, the amendments of the public union UAC, which preserve the exemption of relevant transactions from taxation, were taken into account.

The bill will promote:

• legalization of all sectors of agricultural industry - lowering the VAT rate will reduce the effectiveness of fraudulent schemes, so-called "twists", through which a significant part of grain is exported, and fraudsters receive VAT refunds from the state budget illegally
• saving working capital for farmers, which will allow them to invest in farm development

Thank you for supporting the bill to the factions "Servant of the People", "Opposition Platform - For Life", "European Solidarity", "Batkivshchina"; parliamentary groups "Party “For the Future" and "Trust", nonpartisan councilors.