Three different options of distributing value added tax (VAT) for farmers in 2016 approved by the Ukrainian parliament in the amendments to the Tax Code last week create difficulties for VAT administration and they could increase the pressure of fiscal services on this business, Ukrainian Finance Minister of Ukraine Natalie Jaresko has said.

"I think that it would be difficult to administrate, as there are three different standards. I would not like that this compromise increases pressure of fiscal services," she said at a press conference in Kyiv on Wednesday.

The minister said that it would have to work with MPs to amend the adopted standards.

"For example, someone bought fuel and we understand that this fuel is used in cattle breeding, grain planting or the half of fuel goes to cattle breeding and another half to grain planting," she said.

Jaresko said that she is not confident that the approved approach with three options will be agreed with the International Monetary Fund (IMF), as initially the IMF agreed only one option.

"The option of 25% to 75% was compromise that was discussed by the Ukrainian president at the highest level with the IMF. We planned to give one year to farmers to switch to the general VAT taxation scheme," the minister said.

She said that the major part of the funds accumulated by farmers under the special VAT regime was received by large and profit-making companies last year.

"The myth that the proposed changes destroy small business does not correspond to the information provided by the State Fiscal Service," she said.

As reported, the Ukrainian parliament has approved a compromise on revoking the beneficial VAT taxation regime for farmers via granting the beneficial regime for the period until they transfer to the general taxation system.

According to the amendments to the Tax Code presented by the head of the tax committee, Nina Yuzhanina, in the parliament, in 2016 for the period when milk and meat producers transfer to the general taxation system 80% of VAT will be left for them and 20% will be sent to the budget.

Farmers working with grain and industrial crops will send 85% of VAT to the budget, and other farmers – 50%.

Since 2017, the VAT beneficial regime for farmers will be revoked.