Jaresko proposes leaving 25% of VAT for farmers for another year

17:09, 09.12.2015 1 min read

Ukraine's Minister of Finance Natalie Jaresko has proposed leaving 25% of VAT for farmers during a transitional period lasting one year.

"To equalize working conditions for businesses, we offer to change the terms of a special tax regime for the agricultural sector, providing the industry with a one-year transition period to adapt to the new conditions," the minister said at a meeting of the National Reforms Council on December 8, representing a compromise option of the tax reform.

According to her, in particular, it is proposed to distribute VAT accrued to farmers in the following way: to send 75% of the tax to the national budget, retain 25% at the disposal of the payer (at present the payer has 100% VAT).

"We also propose to renew the right to VAT refunds for all exporters of grains and industrial crops," the minister added.

As reported, the Ministry of Finance on December 1, 2015 issued a draft tax reform, according to which it is proposed to cancel the special VAT regime for agricultural producers.