: :inin Kyiv (EET)

Agrarians lose billions of hryvnias due to cancellation of VAT refund

Cancellation of VAT refund to exporters of grain and industrial crops, which took effect on January 1, 2015, has not led to lower prices for these crops.
Deputy minister for agrarian policy and food of Ukraine Volodymyr Lapa has told this in commentary to an Ukrinform correspondent.
He noted that there would certainly be a decline in volume of earnings of the exporters of grain and industrial crops, who in previous years had the right to apply for a VAT refund.
“We do not notice the impact on prices, but the earnings in the sector remain a more global issue. In this situation, we must look for the tools that will be effective in the current economic conditions,” the deputy minister said.
According to him, it is necessary to work on the implementation of the mechanism of agricultural receipts, increase the liquidity of warehouse documents for grain.
In turn, president of the “Ukrainian Agrarian Confederation” Leonid Kozachenko believes that amidst shrinking budgetary support to farmers, as well as the impact of economic and weather factors, the abolition of the VAT refund will exacerbate already difficult situation in the industry.
“Cancellation of VAT refunds for export may adversely affect the industry. In the past year, the working capital deficit was about UAH 30 billion. This year we expect it to be UAH 70 billion. However, there was a VAT refund last year. This year, we have lost about UAH 16 billion, because there is no compensation,” Kozachenko said.

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