Reduction of VAT and excise duty on fuel will support farmers during the sowing campaign

Reducing the VAT rate from 20% to 7% and abolishing the excise duty on diesel fuel will significantly support Ukrainian farmers during spring sowing. This was announced by Roman Slasten, General Director of the Ukrainian Agrarian Business Club Association.

According to the expert, the reduction of taxes on diesel fuel will partially compensate for its rise in price, which is very important given the lack of working capital among farmers.

In addition, it is important to understand that the reduction of the VAT rate from 20% to 7% will later be compensated by the agricultural business when paying VAT on the sale of agricultural products. Therefore, such a step, according to the head of UCAB, will not lead to a significant reduction in budget revenues.

It will be recalled that recently prices for diesel fuel and gasoline reached UAH 43-47 per liter. However, due to the operative steps of the authorities, the price of fuel at gas stations fell to UAH 33-38 per liter, and the shortage of fuel, which arose in the first weeks of hostilities, almost disappeared.