News (#09 September 2016)

Chamber News

Round Table on priorities and challenges of the agricultural business

On 29 July the American Chamber of Commerce in Ukraine brought together representatives of different branches of government, Ukrainian and international business representatives, Chamber member companies, at the Round Table Reforms in the Agro-Industrial Complex of Ukraine: Priorities for Agrarian Industry Development to discuss challenges the agricultural sector is facing today.

The discussion focused on issues like tax policy and administration, reform of phytosanitary control, reform in grain products storage and the system for grading the quality of grain.

Among the key speakers were Nina Yuzhanina, head of the Verkhovna Rada of Ukraine Committee on Tax and Customs Policies; Tetyana Ostrikova, member of the Committee on Tax and Customs Policies; Ivan Miroshnychenko, member of the Committee on Agrarian Policy and Land Relations; Taras Kutovyi, minister of Agrarian Policy and Food of Ukraine; Olena Kovaleva, deputy minister of Agrarian Policy and Food of Ukraine; Roman Nasirov, head of the State Fiscal Service of Ukraine; Volodymyr Lapa, head of the State Service of Ukraine on Food Safety and Consumer Protection.

During the discussion, Chamber members outlined three major challenges that agribusiness exporters are facing in terms of taxation. They are timely and full refunding of VAT, transparency of the VAT refund procedure and the stability of VAT refunding.

According to business representatives, to remedy the situation it is necessary to establish the following mechanisms: introduce a single public register for VAT refunds; introduce unconditional recognition of a tax credit against a duly registered tax declaration; preserve the VAT refund regime while exporting agricultural products and providing equal conditions for all market players.

In the sphere of reform of phytosanitary and veterinary control and supervision, Chamber members stated that it is now crucial to direct effort towards tightening control on the fields and improving the health of plants by introducing a traceability system in line with best EU practices. And in terms of optimization of business activity for exporters of agrarian products, it is vital to set up a transparent grain blending system, harmonize the system of grain storage and grain quality system in accordance with international standards.

The American Chamber of Commerce in Ukraine is grateful to all participants of the Round Table for their open dialogue and hopes to continue a constructive cooperation, particularly in the implementation of a grain blending system on linear and port elevators, enhancement of the grain storage system and system for determining grain quality.

 

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