The transfer of agricultural companies, which annual turnover exceeds UAH 20 million and their land bank is over 3,000 hectares to the general taxation system puts the development of agricultural production in Ukraine under a threat.

"The transfer of some agricultural companies to the general taxation system puts the development of agricultural production under a threat," an expert of the agricultural markets of the Ukrainian Agribusiness Club Ihor Ostapchuk told Interfax-Ukraine.

He said that around 1,500 companies (9.8%) are included in the first criterion and around 1,600 companies – in the second criterion.

"Actually the decision puts the further development of agriculture under a threat," the expert said.

Ostapchuk said that now good harvests in the world and Ukraine form low prices of products which does not allow getting large profits.

In 2013, grain crops which formed 51.7% of income from sale of crops, showed a record low profitability. The agricultural companies set it at 1.5%, in particular, 2.4% for wheat, 0.6% for barley and 1.5% for corn.

"In the present conditions it is impossible to make step which could worsen the situation, as this could result in the reduction of national production, dismissal of a large number of people, a fall of GDP, a loss of positions on the international market which were conquered during many years," the expert said.

President of the Association of Farmers and Private Landowners of Ukraine Mykola Mirkevych supported the initiative of the government.

"Holdings should pay money to the budget, and the fixed agricultural tax should be paid to the local budgets," he told Interfax-Ukraine.

He said that the average size of land of small companies in Ukraine is 107 hectares.