How long Ukraine to be a primary producing country?

Author : Oleksiy Kushch

Source :

Over the years, the country has had only one positive case: export duties on sunflower seeds and the creation of internal processing of sunflower oil
10:37, 2 March 2021

Open source

Botching lobbying, breaking through the bottom.

For many years I have been writing about tax "settings," some of which can turn the country into a "cornfield," while others – into a highly developed innovation and industrial cluster.

It is not so easy to increase the depth of processing: approximately one conversion in five years.

Over the years, we have had only one positive case: export duties on sunflower seeds and the creation of internal processing of sunflower oil.

Were the leader in the "seed", became the leader in butter. But we still sell in the format of large wholesale, and the same Turks bottle it up, earning their twenty cents per liter.

Last year, "soy changes" were filled up, because we do not need processing plants, let the Ukrainian soybeans be processed in Turkey, and rapeseed in Belarus. Well, corn is in China, at the world's largest bioethanol plant.

Related: Why Ukraine cedes ground in arms exports?

This year, the domestic VAT on agricultural raw materials was reduced from 20% to 14%.

Not for final products from these raw materials in order to increase the purchasing power of the population and reduce the prices of social goods, namely, raw materials.

Now the domestic processor receives a 6% VAT imbalance on the difference between the input and outputs taxation flows.

Tax credit at a rate of 14% for the purchase of raw materials, and tax liabilities at a rate of 20% for the sale of finished goods to the end consumer. We'll have to either raise prices or close production. That is, it will become unprofitable to recycle here. From the word at all.

On the other hand, it will become profitable to sell raw materials abroad: the agricultural trader got a 6% head start at price compared to the domestic processor.

Related: Ukraine gains opportunity to export seeds to EU, - official

Already now, many farmers are talking about how well they are, these apples and cabbage with carrots. We will deal with technical agriculture, where VAT is lower.

The most surprising thing is that many deputies "include the fool", and many do not need to: they say, we have lowered taxes.

With such a primitive power in power, Ukraine will not just become a raw material country, but "deeply raw material", with an emphasis on technical monocultures, growing sunflower already in the Chernihiv region, and destroying all living things with glyphosate.

This is how the political elites are gradually turning into locusts, destroying the once green field of their country...

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