Today, September 17, at a sitting of the Verkhovna Rada of Ukraine, a bill on amendments to the Tax Code of Ukraine on the rate of value-added tax on operations for the supply of certain types of agricultural products was adopted in the first reading. 233 lawmakers voted for the decision.

In particular, the VAT rate for the agricultural sector has been reduced from 20% to 14% for operations on supply in the customs territory of Ukraine and import into the customs territory of Ukraine of agricultural products classified according to the following commodity items under Ukrainian Classification of Goods for Foreign Economic Activity (UCGFEA): 0102 (cattle, live); 0103 (pigs, live), 1001 (wheat), 1002 (rye), 1003 (barley), 1004 (oats), 1005 (corn), 1201 (soybeans), 1204 00 (flax seeds), 1205 (feverfew seeds and rapeseed), 1206 00 (sunflower seeds), 1207 (seeds and fruits of other oilseed crops), 1212 91 (sugar beets).

"Reducing the VAT rate for the agricultural sector is one of the tools to support farmers. Further support for this bill and its implementation will reduce the tax burden on agricultural producers, which in turn will allow to reduce the cost of raw materials for processors of such products. This will help increase the competitiveness of Ukrainian agricultural products, eliminate tax evasion schemes, as well as bring a large part of the economy out of the shadows," commented the Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko.