From the beginning of 2017 Kernel received UAH 7.9 billion export VAT — Ivchenko

From the beginning of 2017, Kernel received UAH 7.6 billion of export VAT from the state budget, and Myronivsky Hliboproduсt (MHP) received more than UAH 1 billion of subsidies.

This was stated by Vadim Ivchenko, the Member of Parliament, informs AgroPolit.com.

The unofficial confrontation between lobbyists of two business groups (grain exporters, as it is claimed, led by Kernel, and poultry producers represented by MHP) continues in the agrarian committee of the Parliament, whether to retain direct budgetary support for large agribusinesses or substantially limit the amount of payments.

As AgroPolit.com reports, Vadim Ivchenko proposes to consider the issue of subsidies for large agro-enterprises through the prism of two factors. The first is payment of taxes to the budget. The second is a reverse support from the state in the form of an export VAT refund.

"There is a logical question — who gets more money? Companies that create added value and jobs, or companies in the domestic market that have few hired workers in large territories, harvest with machinery and then earn on export VAT?" the politician noted.

In his opinion, the mechanism of subsidies needs to be reviewed, so that small and medium-sized producers get access to them.

"I support small and medium-sized producers so that they could get access to subsidies first, because they should be the basis for economic growth of the industry," Vadim Ivchenko said.

Reference: collection of tax payments to the consolidated budget of Ukraine from agricultural, forestry and fisheries enterprises since the beginning of 2017 as of October 1 amounted to UAH 30.3 billion.