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Pavlenko: Government support is a key to Ukrainian livestock sector success
29.01.2016 10:14 "Agro Perspectiva" (Kyiv) —
The Ukrainian Ministry of Agrarian Policy and Food initiatives are aimed at developing of the cattle farming and promoting the production in the mentioned area to a higher organizational level. The livestock breeding has great potential in Ukraine due to favorable climate conditions, land, and human resources. The potential would be unlocked through an effective mechanism of the Ukrainian Government support, Government Portal says referring to the Ukrainian Minister of Agrarian Policy and Food Oleksiy Pavlenko report.
As to the Minister, the Government support of livestock breeding implies a range of activities and measures. Thus, in particular, the Ministry of Agrarian Policy has developed a number of projects aimed at cattle breeders’ support, for example, the Draft Law of Ukraine «On the Amendments to the Law of Ukraine on the export customs duty on live cattle and leather raw materials» and «On Amendments to Article 172 of the Law of Ukraine on Government’s support of agricultural sector of Ukraine».
«The compromise version of the new Tax Code is one of the significant achievements. This Code provides great support for the livestock industry. Producers of milk and livestock have received the biggest grace term for the transition to the general VAT taxation system - they may keep up to 80% VAT on their private accounts, and only 20% must be transferred to the State Budget. Producers of the other livestock products would have to divide the VAT funds in the proportion of 50 to 50,» the Minister stressed.
As to the Minister, signing of an agreement with the European Bank on the ˆ400 million investments into the Ukrainian agrarian sphere would be a significant impetus for the livestock development. These funds are long and cheap credit money and they are designed to address a number of projects including those supporting the livestock industry.
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