The Ukrainian Agri Council addressed the President of Ukraine Volodymyr Zelensky, Chairman of the Verkhovna Rada of Ukraine Dmytro Razumkov, Chairman of the Verkhovna Rada Committee on Agrarian and Land Policy Mykola Solsky and Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Danilo Hetmantsev with a call to bring into the agenda of the VRU the bill No. 2446, which abolishes discriminatory "soybean amendments ".  

At the end of 2017, the Verkhovna Rada of the last convocation passed a law "On Amendments to the Tax Code of Ukraine on Balancing Budget Revenues in 2018", which abolished the VAT refunds on exports of sunflower, rapeseed and soybeans. 

In 2018 these changes led to a sharp increase in the difference between the export and domestic purchase prices for soybeans, which most affected the small and medium-sized agrarian business, which, being unable to export the crop on its own, was forced to sell it to domestic processors or exporters. In their turn, in order to compensate for the undamaged VAT, they lowered their purchase prices. The same situation can now be repeated with rapeseed: from January 1, 2020 VAT refunds will be abolished for the export of rapeseed, with the exception of exporters who are direct producers of these products. However, as it already been mentioned, mainly small and medium-sized farmers are unable to export rapeseed on their own and will again have to sell at a reduced cost to themselves at a cost.

UAC highlights that, in addition to being discriminatory against small and medium-sized agro-producers, soybean amendments will also stimulate the development of the shadow market: these crops will be purchased for "black cash" at a price without VAT, with no further export and without compensation return of foreign exchange earnings to the country.

Moreover, these amendments contradict the Constitution of Ukraine in that the state should protect competition and prevent unlawful restriction of competition and unfair competition. Accepting them is a grave breach of the commitments made by Ukraine when joining the WTO and signing the Association Agreement with the European Union.

UAC calls on the government to restore fairness and fair competition in the agricultural sector and to ensure a level playing field for all its participants.