The Ukrainian Agri Council (UAC) expressed its position on the new tax initiatives proposed by the Ministry of Finance and emphasized the importance of reforming the customs and tax system.

During an interview with Intervisor TV channel, the UAC Deputy Chairman Denys Marchuk spoke in details about the challenges that farmers would face due to the new taxes.

"The Ministry of Finance's initiatives to introduce new taxes to support the Armed Forces of Ukraine are being actively discussed in various business communities. It is clear that in wartime, taxation growth is extremely difficult for surviving businesses. The UAC analyzed these taxes for producers and held a working group with the Tax and Customs Policy Committee, where they expressed their comments and formed a list of issues for the state. One of the key positions of the UAC is to reduce public spending. If the government plans to increase the state budget by UAH 130 billion at the expense of business, then part of these funds should be saved by reducing inefficient spending. For example, it would be possible to reduce expenses by UAH 62.5 billion by eliminating corrupt "gray" schemes and "dark" business," explained Denys Marchuk.

The UAC emphasizes the need to reform customs and tax structures. "We are also talking about reforming customs and tax structures, because in the conditions when the influence and administration for business will be increased, and this will be supervised, frankly speaking, by structures that are not trusted, then we are faced with the question: will these reforms with taking money from business ever end? There should be clear reporting on where the state directs funds. That is why this is also on the reform agenda," said Denys Marchuk.

Raising taxes is advisable only until the end of the war.

"The draft law states that taxes will be raised for the period of reforming the Armed Forces. However, it should be understood that the Armed Forces of Ukraine have been reforming since the beginning of the war, i.e. for 10 years, since 2014. We understand that even after the war is over, with the aggressor country next door, which can attack Ukraine again at any time, the Armed Forces need to be reformed. Therefore, funds will be needed and we must understand that business must be clearly organized in the format of rules," emphasized the Deputy Chairman of the UAC.

Commodity producers are concerned about the proposals to tax companies' turnover at 1%.

"Taxation on company turnover at 1% is a significant amount of money, and it is unfair, especially when you consider that the turnover may be high, but the company's earnings are not significant. We believe, and this is supported by many other businesses, that it is better to "transfer" this tax to VAT, which is generally supported today, including by the Tax and Customs Policy Committee," said Denys Marchuk.

The UAC also emphasizes the importance of continuing the land reclamation reform.

"The law on Water Users' Organizations, which we have been advocating, has been in force for several years. However, the process of transferring reclamation systems from the Ministry of Ecology to the Ministry of Agrarian Policy is slowing down. Many regions have already actively joined this process, but bureaucratic obstacles on the part of the Ministry of Ecology delay the reclamation systems transfer. Given climate change and the need to develop irrigation, the UAC calls for faster reform of this sector," summarized the UAC Deputy Chairman.