VAT will not be returned to grain exporters
2011-06-17 16:03:39
New tax legislation in Ukraine does not ensure Value Added Tax compensation for the exporters of grain. Such action will most likely lead to an inevitable fall of local prices by at least 20% as stated by the President of Agricultural Confederation of Ukraine, Leonid Kozachenko. Mr. Kozachenko also forecasted additional 10% decrease in local prices for grain seeds due to new law on export duty.
Another challenge that is posed to grain producers is increase in harbor charges, thus the price of grain may fall lower than its production cost. At the same time harvests of grain are currently determined at potentially higher levels than the usual ones.