Export duty back on the table: Ukraine revisits 10% tariff on soy and rapeseed

UkrAgroConsult

Article author:

Svitlana Kupreeva

Oilseed Market Analyst

Ukrainian farmers are between price pressure from export taxes and fiscal uncertainty that could question IMF support. July is shaping up to be a defining month for agri trade policy.

The 10% export duty on soybeans and rapeseed is back under parliamentary review as a part of draft law, which amends the Tax Code in connection with industrial pollution prevention.

A preliminary round of talks took place Thursday June 26, the talks gave the green light.

The amendment will now go to the Tax Policy Committee for review on Wednesday, July 2 with a full vote in Parliament expected on July 15.

Another amendment of the legislation on the table

This amendment seeks to exempt dividends in agri-cooperatives from taxation — encouraging group-based processing and export models.

Backed by the Ukrainian Agri Council as a financial cushion if the export tax is imposed.

Still controversial: Some lawmakers fear this could trigger backlash from the IMF, especially if seen as excessive tax breaks for farmers. The stability of the entire 4th tax group may be at risk.

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Tags: Ukraine, export, soybean, rapeseed, legislation, restrictions