BP introduced a bill to reduce the VAT for food products up to 7%
on Friday, 4 November for consideration in the Verkhovna Rada was registered the draft law No. 5363, which provides for the reduction of the VAT rate for certain food products and for their production of raw materials to 7%. The composition of the sponsors of the bill included MPs Sec. Labatut, Miroshnichenko, L. Kozachenko, P. yurchishin, A. Bakumenko, Kucher M. and others.
the New law aims to protect the interests of farmers, development of agricultural sector, the reduction of prices of essential for the population of goods, elimination of the shadow economy, creating new jobs in rural regions.
the Main innovation of the document began the introduction of a minimum social tax obligation for farmland (bet 1-2% of the normative monetary value of land) and a decrease to 7% VAT rate for certain food products and their production raw materials:
some dairy products and all types of cheese, the
- pigs, sheep, chickens, cattle and meat from them,
- food animal products
- of products from meat and offal,
- chicken eggs,
- sugar beet derived sugar.
in addition, the new bill provides for the reduction of the VAT rate for products the share of import of which into Ukraine is insignificant. By the end of 2015, such products were imported: live animals – 0,2%, vegetables – 0,2%, milk, dairy products, eggs, poultry, honey – 0,2%, edible offal of 0.3%, sugar and confectionery products – 0.1 percent.
the Practice of reduced VAT rates for some food products and medicines are already proved to be positive in the EU. The authors of the bill believe that it will keep prices of agricultural products, increase the amount of working capital from farmers, to support agricultural production.