In the Parliament are preparing a new tax for small farmers

В Раде готовят новый налог для малых фермеров

MPs propose to introduce a 6 thousand hryvnias annual tax per share

About 40 deputies from the faction “people’s Servants” and “Trust” initiated the introduction of a new tax for ordinary land owners. Small farmers want to oblige to pay an annual 6 thousand hryvnia per hectare of land, regardless of income.

We are talking about bill No. 3131. I registered back in February, the initiators were 36 MPs from the faction “people’s Servants” and “Trust.” In June, the document was approved by the Verkhovna Rada Committee on Finance, tax and customs policy, the draft law included in the agenda.

The document introduces a so-called minimum tax on the income from each hectare of agricultural land, regardless of how much money the farmer.

According Gosgeokadastra, are processed independently in their land 4.7 million farmers. Now they pay up to 300 UAH of land tax per hectare. 18% tax on income from sales of agricultural products shall pay only the individual farmers who grow the products on more than 2 hectares.

The main claim to small farmers from the big agribusiness and people’s deputies – abuse not to report the income.

“A significant number of citizens – owners of land plots or shares, not declare the income received from the use of their land. Thus the honest farmers are at a disadvantage with the “minimizers”, in which the tax burden is much lower. This makes impossible the normal development of the competition and the agricultural market and has a negative impact on attracting investments in the agrarian sector of Ukraine”, – stated in the explanatory note to the bill.

Do not agree with this formulation economist at the Kyiv school of Economics Oleg Nivievskyi, who believes bill No. 3131 extremely dangerous.

“It’s just a land grab, in English is called the phenomenon of the forceful displacement of small farmers from their land by large agricultural companies. This will just “pressing” the land from individual farmers” – said Noveski.

Experts note that, formally, the new tax will apply to all, but the firm holdings to pay its actually not.

Also RBC-Ukraine reported that the government plans to introduce a moratorium on raising taxes and fees by 2021.

В Раде готовят новый налог для малых фермеров

The Verkhovna Rada
The government