Ukrainian farmers are actively calling on the authorities to revise the conditions of taxation of fuel used in agriculture. Representatives of agribusiness and specialized associations appealed to the Verkhovna Rada with a demand to introduce preferential excise taxation on fuel used for processing agricultural land.
The Association "Ukrainian Club of Agrarian Business" (UKAB) reports that leading agricultural organizations have appealed to the Chairman of the Verkhovna Rada of Ukraine and people's deputies with a request to take into account the European experience and implement fair approaches to excise tax taxation.
UKAB reminds that the Verkhovna Rada will soon vote in the second reading on draft Law No. 11256-2, which provides for an increase in the excise duty on diesel fuel from 139 to 330 euros per thousand liters by 2028. This increase caused concern among farmers, since agricultural machinery does not use public roads, but is still subject to excise tax.
Maria Didukh, director of the All-Ukrainian Agrarian Forum, noted that Ukrainian farmers already pay twice as much excise tax as compared to their European counterparts, and the new draft law will increase this burden fivefold. She emphasized the need for a reduced rate of excise duty for the agricultural sector, which is critical to providing resources to finance the military, but unfair to those who do not use public roads.
Didukh also emphasized that the proposed increase in excise duty is not only for the period of martial law, but also on a permanent basis. She called for the harmonization of legislation with European norms, which provide for much lower excise rates for farmers.
Denys Marchuk, deputy chairman of the All-Ukrainian Agrarian Council, noted that raising the excise tax to 330 euros would create non-competitive conditions for Ukrainian farmers. He compared excise tax rates in Ukraine and EU countries, where they are much lower, and cited the example of Poland, where farmers do not pay this tax at all thanks to a special excise tax refund.
Oleg Khomenko, general director of the association "Ukrainian Club of Agrarian Business", noted that the increase in excise duty will inevitably lead to an increase in the cost of production and a decrease in the competitiveness of Ukrainian farmers. He emphasized that farmers are not asking for additional subsidies or compensation, but are demanding fair taxation conditions similar to those in developed countries.
Agrarians call on the deputies to take into account the amendments to the draft law No. 11256-2, which provide for the reduction of the excise tax rate for agricultural producers after the end of the war. They emphasize the importance of harmonizing legislation with European norms to ensure fair conditions of taxation and support for the agricultural sector of Ukraine.
e-finance.com.ua