The People´s Deputy, Ye. Sihal, the author of the Bill (Reg. No. 1419) states that it was elaborated "to preserve due indirect support of agricultural producers in conditions of insufficient State budget funds to secure their direct support".
Inter alia, it is proposed to eliminate VAT zero rate in the field of agricultural production in case processing enterprises are supplied with milk and meat in live weight by agricultural producers of all forms of ownership. It is also proposed to suspend subventions granted to the milk and meat producers due to special VAT treatment in the field of processing and storage of the said production.
Pursuant to the Bill, agricultural producers should accumulate the VAT funds during any operations concerning agricultural produce sale, including sale of milk and meat to the processing enterprises. The rate of budgetary compensation is estimated with account of the tax credit share that originated after such enterprises purchased working stock, raw material and resources used in production of exported grain and seeds of agricultural crops, and with account of the VAT that was already compensated (paid) to the agricultural producers.
It is also proposed that agricultural producers are granted the right to submit a tax bill with the VAT redemption term established for 720 calendar day to the customs control bodies, whilst importing new technological machinery and equipment, prefabricated buildings and premises, machinery for agricultural production, harvesting and threshing of agricultural crops, tractors, lift-and-carry transfer mechanisms, trucks, trailers and other machinery for individual agricultural production (that is not produced by Ukraine) to the customs territory of Ukraine.