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Next week, the Ukrainian government officials intend to raise the issues in the Verkhovna Rada that are relevant to large agricultural holdings, Ukrainian information agency RBC-Ukraine reported.
Although a share of Ukrainian farmers in Ukraine's GDP has reached 10%, the agency notes that they provide for only 1% of the state's total tax revenues. Head of Verkhovna Rada Committee on Agrarian Policy and Land Relations Taras Kutoviy has registered bill No. 2527 on introduction of general tax regulations for the agrarian sector.
Deputies’ initiative was broadly supported by the Cabinet of Ministers. Finance Minister Natalie Jaresko said that the agriculture was the strongest sector in Ukraine, but also noted its modest contribution to filling the budget coffers. The IMF voiced its support on this issue, pointing out the absurdity of the "benefits for the rich" amid total crisis.
According to the IMF Resident Representative in Ukraine Jerome Vacher, the annual cost of various tax benefits for the agricultural sector is UAH 30 billion.. Therefore, the tax bill is one of the key preconditions for receiving the second tranche from the IMF by Ukraine," according to RBC-Ukraine.
It is noted that, despite the unanimity of positions of the committee head, the Cabinet of Ministers and the representatives of international institutions, the adoption of the bill was quite strenuous.
Agricultural holdings are said to have reached high levels of income, including due to being keen on strong lobbying campaigns, according to the agency.
RBC-Ukraine also cites opinions of experts and representatives of the relevant committee of the Verkhovna Rada arguing in favor of the bill to create equal conditions for all market participants.