“Soybean and rapeseed amendments” return in a new bill — Ukraine prepares for a second attempt

UkrAgroConsult

The Verkhovna Rada will once again consider the “soybean and rapeseed” amendments, which provide for the introduction of a 10% export duty on soybeans and rapeseed. This time, they are included in draft law No. 13157, which is being prepared for its second reading. The document concerns amendments to the Tax Code in connection with the adoption of the law on integrated prevention of industrial pollution. According to the head of the parliamentary committee, Danylo Getmantsev, the amendments will combine several controversial initiatives that did not pass in the previous draft No. 13134.

The author of the “soybean-rapeseed” amendment this time will again be People’s Deputy Andriy Motovylovets. Its text is almost identical to the initiative that failed on June 18, but before the second submission, deputies promise to consult with the Ministry of Finance. The bill with new amendments is expected to be discussed by the committee next week, and on July 15, it may be put to a vote in the session hall.

At the same time, there are plans to include the so-called “patronage” amendment, which provides for special taxation of dividends in agricultural cooperatives. It is being actively promoted by the All-Ukrainian Agrarian Council as an economic alternative for farmers in the event of export restrictions. In this case, payments to cooperative members will not be taxed as classic dividends, which will stimulate the development of independent product exports.

However, some MPs have expressed doubts about the adoption of the “patronage” amendment even at the committee level. The reason is the risk of a negative reaction from the IMF due to the granting of excessive tax breaks to the agricultural sector. In particular, we are talking about a possible weakening of the entire fourth taxation group, which is used by most agricultural producers.

Tags: export, soybean, rapeseed, legislation, restrictions