REUTERS
The most adequate proportion of the distribution of value-added tax for agricultural enterprises is a proportion, when 50% of the tax remains with the farmers, and 50% is put in the budget, head of the agency Roman Nasirov told the reporters after the press conference.
"The SFS believes that within the framework of the changes that are already in place, it would be adequate and right to have a 50/50 variant. This is the same as the subsidies for the industry through special regime mechanism. When we decided the tax fee on into three, it provoked a conflict, created space for manipulation and management difficulties," he said.
The SFS chief noted that in this case, the losses to the budget this year will amount to nearly UAH 7 billion.
"But with the over-fulfillment we have today, it will be possible to cover," he said.
According to Nasirov, the current version of the special regimes for VAT to farmers has not lived up to expectations.
"It has been calculated that after the withdrawal of the special regime, the agricultural sector will give the additional UAH 1 billion per month in VAT payments. But in January, we saw UAH 100 million, in February – UAH 150 million, in March – UAH 400 million," he said.
Read alsoRada Speaker: Adopted budget helps avoid destabilizationAs UNIAN reported earlier, on December 24 2015, the Verkhovna Rada of Ukraine adopted amendments to the Tax Code, representing a compromise between the government and the parliament proposals for tax changes required to implement the revenue part of the 2016 draft state budget.
Read alsoUkraine's Agrarian Ministry promises low rates on loans for farmersThe adopted document stipulates changing of approaches to taxation of farmers in terms of VAT payments. Distribution should take place in the following proportions: for grain and industrial crops producers the proportion will be 15% in special accounts (for further use at company’s discretion) and 85% in the budget; for producers of livestock and dairy products - 80% in special accounts and 20% in the budget, for producers of other products the proportion is 50% to 50%. Earlier, the Ministry of Finance proposed to establish the following proportion for payments of all agricultural enterprises: 75% in the budget and 25% in special accounts of enterprises. According to the agreement with the IMF, the government intends to abolish the VAT special regime in 2017.