The Verkhovna Rada adopted the law “On Amending the Tax Code of Ukraine and Approving Export Duty Rates on Some Grain Crops.” The law puts into effect the following rates: wheat, wheat/rye mixtures, and spelt – 9%, but at least EUR 17 per MT, barley – 14%, but at least EUR 23 per MT, corn – 12%, but at least EUR 20 per MT. in part of the duties, the law is to come into force from the first day of the month following its publication and is to be valid until January 1, 2012.

The draft law initially submitted by Vitaliy Khomutynnik, head of the finance and tax committee, passed the second reading as a government bill identified by the President as urgent (this concerns the question of who and at what level lobbies for the duties). Before the law adoption, parliamentary lawyers repeatedly indicated that the law contradicts both the obligations of Ukraine as a WTO member and the country’s domestic legislation, which prohibits the introduction of any new taxation regulations for the current fiscal year.

The law adoption is explained, most likely, by the fact that the government has no money, and the relations with the IMF are already spoilt anyway (and no new tranche is to be exp
ected) because the pension reform has not yet started.

Since the law comes into force from June 1, the government need urgently lift quotas for the remaining grains, said Vitaliy Khomutynnik. 

UkrAgroConsult