Ukraine may introduce a 10% export duty on rapeseed and soybeans

UkrAgroConsult

At a meeting of the Tax Committee of the Verkhovna Rada on June 13, deputies considered the so-called “soybean and rapeseed” amendment to draft law No. 13134. The initiative provides for the introduction of a 10% export duty on soybeans and rapeseed in order to stimulate domestic processing and replenish the state budget. The authors of the amendment, Dmytro Kysylevskyi and Andriy Motovylovets, emphasized that the duty is not directed against producers, but against traders who export raw materials without added value. According to the initiative, producers who have grown their own products are exempt from paying this duty. Currently, sunflower seed exports in Ukraine are already subject to a 10% duty.

Dmytro Kysylevskyi emphasized during the discussion that the introduction of the duty will allow Ukraine to earn on processing, and not give profits to EU countries, which have repeatedly expressed claims regarding the large volume of raw material exports from Ukraine. He also noted that the country has enough free processing capacities: since 2022 they have been increased by 3 million tons, and about 3 million more tons are under construction.

On the other hand, some deputies criticized the initiative, calling it a repetition of the already well-known “soybean amendment”, which, according to Yaroslav Zheleznyak, only creates new barriers to exports and plays into the hands of large processors. Committee Chairman Danylo Getmantsev also stated that such measures could disrupt market conditions and lead to the fact that large exporters will win, while small farmers and traders will lose the opportunity to sell products directly abroad.

Supporters of the duty insist that short logistics and added value within the country are an opportunity for small and medium-sized producers. They will be able to sell their harvest on the domestic market without significant transportation costs, while the budget will receive additional tax revenues.

The final decision on the introduction of the duty is expected to be adopted by the Verkhovna Rada in the near future, as the active rapeseed export season will begin in July-August. The discussion continues against the backdrop of a broader issue of a strategy to support the processing industry and reduce Ukraine’s dependence on foreign markets for raw materials.

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