Fitch Ratings, while analyzing the provisions of the new tax code, estimated as neutral the influence of changes on the Ukrainian agricultural sector, UKRINFORM reported, with reference to Fitch's website.

Fitch notes that upcoming fiscal regulatory changes affecting the agricultural sector in Ukraine, some of which come into effect from late-2011, will have, at least for the foreseeable future, a limited impact on Ukrainian agricultural companies' ratings, including Mriya Agro Holding ('B-' /Stable), Kernel Holding S.A. ('B'/Stable) and Myronivsky Hliboproduct S.A. ('B'/Stable).

According to Fitch, the new tax code that commenced on April 1, 2011 will decrease the corporate tax rate gradually to 16% by 2014 from 25% previously. This is neutral for the sector as agricultural companies with sales of agricultural goods of their own production above a certain threshold of gross income may choose to pay Fixed Agricultural Tax (FAT) at 0.15% of the deemed value of all of the land plots leased or owned by the taxpayer.

"Under the new tax regime, Ukrainian agricultural producers will have incentives to export directly, thus diminishing traders' current prominent role. Grain traders' operating margins could be compressed from their already low-to-mid single digits, as they will no longer be able to claim back VAT from the state," Pablo Mazzini, Senior Director in Fitch's European Corporates team in London, said. "However, the challenge facing agricultural producers will be access to infrastructure and a trading platform that justify profitable, undisrupted exports," he added.

UKRINFORM