Grain export VAT will only be refunded to growers, Yatsenyuk
Only growers can claim crop export VAT refunds from the government, said Ukrainian Prime Minister Arseniy Yatsenyuk. “Despite a difficult discussion, we keep VAT benefits (accumulations, - IF) for the agricultural sector. But I also state publicly that export VAT will be refunded solely to agricultural producers. We have no money in the budget to feed traders,” he said in a speech in Parliament on Thursday. The Premier reminded that Ukraine’s foreign creditors demand to switch the agricultural sector to the general taxation system. “At my last meeting with them I stated that our coalition and our government cannot switch the entire agricultural sector to the general taxation system from 2016, because the special VAT regime is the only tool for supporting this sector,” said A. Yatsenyuk, noting that European countries subsidize their agriculture. Reportedly, the coalition agreement provides for keeping the agricultural tax benefits until 2018.