At the end of December 2017, there were attempts to restore the “status quo” by registering bill No. 7403-2 on the reinstatement of VAT refunds for soybean and rapeseed exports, which would have been the optimal solution for restoring the competitive environment<\/strong>. The business community supported this legislative initiative.\u00a0 However, the situation changed by the end of summer 2018 – an alternative law 2440-VIII<\/a> was adopted and entered into force, which made exceptions for producers who independently grow the above-mentioned products on agricultural land<\/strong>.<\/p>\n It should once again be emphasized that selective tax policy, in the form of a budget reimbursement of VAT refunds for the export of soy and rapeseed to agricultural producer enterprises only, violates the principles of free competition.\u00a0 Such an approach discriminates against the rights of other exporting companies, small and medium-sized farmers, who were also deprived of the opportunity to receive a budget refund of VAT<\/strong>.\u00a0 As a result, this may lead to an increase in the shadow grain market in Ukraine and cause a reduction of revenues to the state budget, since small and medium-sized farmers who are not able to export their products on their own will be forced to sell goods for cash.<\/p>\n Even today, the consequences of such a discriminatory policy are tangible: producers of soybeans suffered significant financial losses since they cannot sell their goods at world prices because of the artificial limitation of demand<\/strong>. Given the fact that Ukraine’s oil and fat sector only processes 27% of soya and 7% of rapeseed<\/strong>, soybeans and rapeseed growers are forced to reduce the planting of these crops, which will reduce the currency revenues to the state budget.<\/p>\n
![](\"https:\/\/eba.com.ua\/wp-content\/uploads\/2017\/10\/Iryna_Dushnik.png\")
\n\n\t\t\t\t\t\t\t