By KYIV. Nov 18 (Interfax-Ukraine) – The Ukrainian Grain Association (UGA) categorically disagrees with the possible introduction of so-called "deposits" for each export operation, since this will damage the export of grain, which is now almost the country’s only source of foreign exchange earnings and replenishment of the national budget.
According to the text of the UGA appeal to the members of the committee on finance, tax and customs policy of the Verkhovna Rada, the association categorically does not support the bill No.8166 and cleaning campaigns.
"Today, the ‘freezing’ of additional funds of exporters in the accounts in case of non-reimbursement of VAT, as well as the need of farmers for the availability of working capital for sowing and harvesting campaigns, along with a significant increase in the cost of logistics, can threaten not only grain exports and the deterioration of domestic prices for farmers, but also puts under the threat of further sowing and harvesting," the organization said in an appeal to the Committee.
In addition, the introduction of "deposits" for each export transaction will further increase the cost of trade and grain export costs, as well as further reduce the price of agricultural raw materials for farmers who directly grow products and sell them for export.
The association said it fully supports the measures taken by the authorities to return foreign exchange earnings to Ukraine and eliminate the shadow grain market, however, this bill does not solve these issues, but only complicates the work of farmers.
"UGA also took part in the development of alternative draft laws and is forced to admit that the relevant working group of the Ministry of Agrarian Policy did not find an optimal solution to this issue. Therefore, UGA also does not support additional regulation of the agricultural business and emphasizes that the relevant proposals will significantly complicate the administration of the issue of returning foreign exchange earnings," the organization said.
"In our opinion, the National Bank, the Tax Service and the Economic Security Bureau should be involved in discussing the important issue of combating the shadow market, because these structures have mechanisms and tools to combat unscrupulous market participants," UGA said.
