The Committee on Finance, Taxation and Customs Policy recommends to adopt as a basis the bill on improve the legal regulation of insurance of agricultural products with state support

Information Department of the Verkhovna Rada of Ukraine Secretariat
01 April 2021, 18:00


The meeting of the Committee on Finance, Taxation and Customs Policy was held, at which the draft Law No. 5104 "On Amendments to the Tax Code of Ukraine to Improve the Legal Regulation of Insurance of Agricultural Products with State Support" was considered in the first reading. The bill introduces state support for agricultural producers in terms of insurance of agricultural products.
The draft law, in particular, proposes to amend the Tax Code in terms of increasing the income tax rate on agricultural insurance contracts by 0.5 percent.
Amendments are also being made to the Law “On Peculiarities of Insurance of Agricultural Products with State Support”, which defines: the mechanism of providing state support to agricultural producers for insurance of agricultural products; participants of the market of insurance of agricultural products with state support, requirements to them, their rights and obligations; objects of insurance, insurance products, insurance risks, insured events, requirements to insurance contracts with state support, etc.
According to the draft law, the amount of partial compensation to agricultural producers of insurance payments (premiums) is proposed to be set at 60%. The specific amount of compensation will be determined based on the capabilities of the state budget in the appropriate order of use of budget funds.
Presenting the bill, the Deputy Minister of Economic Development, Trade and Agriculture noted that the issue of support for agricultural producers has been repeatedly tried to resolve, in particular, by creating an artificial association Agrarian Insurance Pool. However, this association did not fulfill its function. In addition, confidence in agricultural insurance has been undermined by non-payment by insurance companies.
According to him, in order to increase confidence, it is proposed to introduce a clear system of accreditation of insurance companies that have the right to participate in state insurance programs.
The Committee decided to recommend to the Verkhovna Rada to include the bill in the agenda of the session and to adopt it as a basis.