News
12.12.2012
Budget 2013: government support of AIC knocked out − UCAB
The draft state budget for 2013, submitted to the Verkhovna Rada of Ukraine by the Cabinet of Ministers of Ukraine is the most stringent in relation to agriculture in the last 7 years. This was noted by the Association "Ukrainian Agribusiness Club" (UCAB), commenting on the registered in parliament the draft law "On the State Budget of Ukraine for 2013".
According to calculations of UCAB experts, the direct support for farmers in 2013 will amount to less than 30% from the level fixed in the state budget for 2012. "The general reduction in funding of the Ministry of Agrarian Policy and Food of Ukraine will amount to 2.6 billion UAH, - says Director General of UCAB Volodymyr Lapa - but the main reduction accounted for the farmers’ budget support program."
In comparison with the current year, the costs for important budget programs reduced, including:
- "Financial support of measures in agriculture" (by more than 10 times: from 1.007 billion UAH to 97 million UAH);
- "Financial support of measures in agriculture under the terms of financial leasing" (from 30 million UAH to 8.8 million UAH).
Moreover, the draft law does not provide the budget program 2801350 "State Support of development of hop production, establishment of young orchards, vineyards and berry orchards and their maintenance", and what is more the Law of Ukraine "On duty for viticulture, horticulture and hop production" involves levying of a duty aimed at the development of these industries. At that, the features of duty collection by business entities that use the simplified system of taxation, accounting and reporting are established by the Tax Code of Ukraine. This means that farmers will lose more than 1 billion UAH.
According to the President of UCAB Alex Lissitsa, this appears to be an absurd case when the purpose of the duty was not reflected in the draft state budget. However, the main issue concerns even not the budget support but the predictability of government policy in the industry in general.
"Increase in the normative monetary value of arable land by 75%, reduction of funding of budget support programs by 71% for a period of 13-14 months - says A. Lissitsa. - In addition, the powerful administrative press should be noted: control of crop rotation and the need for land arrangement projects, the annual inspection of elevators, problems with certification of seed crops, lack of freight cars for transportation of grain and oilseed meal, blockage of trucks with grain on highways, attempts to bureaucratize the mode of use of funds through tax incentives and much more. "
The expert claims that under such conditions it is difficult to avoid the impression of a conscious policy to stop the development of agricultural production in Ukraine, recalling the words of one expert from neighboring countries, "all you need to hack can be made by Ukrainian themselves."
UCAB hopes that during the elaboration of the draft law "On the State Budget of Ukraine for 2013" in the Verkhovna Rada of Ukraine the deputies will take into account the major comments and suggestions producers.
Association "Ukrainian Agribusiness Club"
Velyka Zhytomyrska str., 20 А, office 53, Kyiv, 01001
Phone: +380 44 201-4950
Fax: +380 44 201-4951
099 272 59 30
Tetiana Kotyk
www.agribusiness.kiev.ua
The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.
