By KYIV. Nov 3 (Interfax-Ukraine) – The Ukrainian Agribusiness Club (UCAB) has asked the government to approve as soon as possible the list of territories occupied by the Russian Federation and territories where hostilities are (were) conducted, since the farmers who process it are still forced to pay the minimum tax liability from such lands.
The UCAB sent this appeal with a request to provide relevant instructions to Prime Minister Denys Shmyhal.
According to the association, this need is due to the fact that farmers from the territories affected by the Russian invasion are exempted from paying the minimum tax liability in 2022 and 2023 reporting years, but cannot use this right due to the delay of the Cabinet of Ministers in approving the list of territories affected by the Russian aggression.
The UCAB recalled that last year law No. 1914-IX was adopted, which established the minimum tax liability as the minimum tax liability for paying taxes, fees and payments related to the use of agricultural land. At the same time, 2022 will be the first year for which the minimum tax liability is determined and, accordingly, at the beginning of 2023, Ukrainian farmers will have to submit relevant reports and calculations for this tax.
At the same time, this law establishes that for the correct calculation of the minimum tax liability, the Cabinet of Ministers must approve the list of territories where hostilities are taking place (or temporarily occupied by the armed formations of the Russian Federation), but the government is delaying this process.
"Today, such a list has not yet been approved. The UCAB has repeatedly appealed to the government on this issue, but no response has been received to any of the official letters. That is, while the Cabinet of Ministers is delaying the definition of the list of territories, based on the current provisions of the law, even if the farmers do not physically have access to the land, cannot cultivate it, sow/harvest it, and therefore cannot receive income, they will have to accrue the minimum tax liability for these land plots," the appeal explains.
