The tax committee has decided to deprive chicken producers of benefits in Ukraine

Published 2021년 9월 20일

Tridge summary

The Ukrainian Parliamentary Committee on Finance, Tax and Customs Policy has recommended the rejection of Bill 005600 in its current form, due to concerns over potential negative impacts on agricultural sectors, particularly poultry and egg producers. The bill's provisions, such as increased business inspections, a higher minimum tax burden, and changes in taxation groups, have sparked debate among lawmakers and market participants. Critics argue that these changes could force businesses into the informal sector and increase poultry and egg prices, while also potentially reducing local budget revenues. The committee has also suggested exempting small producers of certain poultry products from income tax for five years, but with the condition that they have only one activity. The final decision on the bill is pending in the Verkhovna Rada.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After a week of consideration, the Parliamentary Committee on Finance, Tax and Customs Policy recommended that the Verkhovna Rada adopt Bill 005600 in the second reading. 22 members of the committee voted in favor, four abstained. The bill provides for a list of amendments. In particular, increased business inspections and strict administration, the establishment of a minimum tax burden, which can be a disproportionate burden for unit holders and small farmers, exclusion from the 4 groups of taxation of enterprises engaged in the production of chicken. Instead of 2 hectares of land, the income from the sale of crops from which is not taxed, the committee considers it necessary to set a norm of only 0.5 hectares. As a result, market participants say, business will go into the shadows and poultry and egg prices will rise significantly. Perhaps the proposal to exclude chicken and egg producers from the 4th tax group caused the most controversy between the participants of the meeting ...
Source: Agroconf

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