This was reported by Stepan Cherniavskyy, MP, deputy chairman of the agrarian committee of the Verkhovna Rada, in an exclusive commentary to AgroPolit.com.
“In Europe, the practice of reduced VAT rates for producers and processors of agricultural products is successfully used. In my opinion, Ukraine should also introduce a reduced VAT rate from 0 to 14% for producers of basic social products. First of all, the reduced VAT rate should be used for “borscht set” vegetables, as well as for milk, bread, eggs and vegetable oil. These products are the main group in the consumer basket of Ukrainians, so their costs eat up the bulk of food expenses,” Latifundist quoted the MP as saying.
Many EU countries have reduced VAT rates for food products at the level of 5-7 percent, which are used as a tool of social support for the population in the conditions of inflationary pressure.
Note by Logos Press: In Moldova, farmers’ organizations have repeatedly expressed concern that the Moldovan authorities are analyzing the possibility of raising VAT on agricultural products from 8% to the basic rate of 20%. No plans to reduce the 20% VAT on food products have been reported yet.
