MPs propose lowering VAT for berry producers to 7% from 2019
10.07.2018 23:09 "Agro Perspectiva" (Kyiv) —
As of this week, a group of lawmakers from different factions of the Verkhovna Rada have proposed to reduce, since Jan 1, 2019, value-added tax (VAT) for horticulture, grapes and viticulture products from 20% to 7%, Interfax-Ukraine reports.
As to the report, a corresponding draft Law No. 8570 has been registered at the Verkhovna Rada on this year Jul 6. Its authors were 13 MPs, including Mykola Liushniak, Fedir Negoy, Vasyl Petiovka, Oleg Kulynych and Robert Horvat.
Report, the Rada Committee on Agrarian Policy and Land Relations member Oleg Kulynych has said gardening and other related activities always mean a serious capital investment with a long payback period, adding that Ukraine annually produces about 2 million tonnes of fruit and berry products, the lions share of which is grown by small producers.
«Therefore, support from the State is a necessary and adequate step that we must take,» Kulynych writes within his Facebook. He admits this measure would encourage gardeners to leave the «shadow economy» and pay taxes in full.