Ukraine increased agricultural production by 8%

According to the state statistics service, during January-December 2018 Ukraine increased in comparison with the year 2017 the volume of agricultural production by 7.8%. At that, agricultural enterprises increased production by 12.1%, whereas households of the population – 2.2%.

Production of plant products in 2018 increased by 10.7%, and in agricultural enterprises – by 14.8%, in households – by 2.8%.

livestock Production in 2018 rose by 0.3%, and in agricultural enterprises it increased by 2.8%, whereas in households decreased by 1.9%.

Recall that in 2017 the production of agricultural products in Ukraine decreased compared with the year 2016 2.7%, in particular, in agricultural enterprises – by 3.9%, in households – 1.2%.

After the occupation of the Donbass, the reduction in exports of metallurgical products, agricultural sector has become the locomotive of the Ukrainian economy, which brings more than 42% per annum of foreign exchange earnings. It is the result of government programs to stimulate the agricultural sector, where, since 1999, was introduced the fixed agricultural tax and granted privileges for payment of VAT. Recently, however, the IRS is trying to increase revenues to the state budget from the farms, so that in 2017 a special regime for agricultural producers for payment of VAT is cancelled, and this year it was proposed to cancel the VAT on all agricultural products, to reduce the amount of VAT refunds for exporters.