The State Fiscal Service of Ukraine plans to propose amendments to the Tax Code of Ukraine regarding the annulment of VAT on supplies of grain crops and oilseeds to the domestic and foreign markets. The authority said in a statement to the Ukroliyaprom association, a copy of which has been forwarded to Interfax-Ukraine, the fiscal service proposed abolishing taxation of transactions related to supplies of wheat, barley, soybeans, rapeseeds, sunflower seeds, soy, sunflower, rape and mustard oils on the customs area of the country and for exports.
The fiscal service said that during 2017 and the first half of 2018, companies exported these goods totaling more than UAH 500 billion.
“For 2017 and the first half of 2018, the amount of budget reimbursement of VAT only to the largest exporters of grain and oilseeds (1.4% of their total) was UAH 32.2 billion, or more than 2.2 times higher than the total VAT receipts from almost all economic entities, in the registration files of which one of the activities indicated the production of these products, as well as its sale,” the authority said.
The fiscal service assesses the negative effect of this at UAH 50 billion and indicates a high shadowing of the market in these segments. At the same time, the fiscal service recognizes that the tax administration of VAT in this area and the corresponding supervision and law enforcement measures are ineffective.
In turn, the agrarian associations expressed concern about this initiative, emphasizing that the abolition of VAT refunds could affect not only export, but also operations in the country itself.
“When selling products with VAT, a farmer sends the received funds from paying the tax to compensate to himself the VAT that he paid in the price to his counterparties for various materials: seeds, crop protection agents, fuel, electricity and fertilizers. The remainder is sent to the state. After the implementation of these initiatives, farmers will have to compensate for the VAT paid to their counterparties by increasing the cost of goods,” Deputy Head of the Ukrainian Agrarian Council Mykhailo Sokolov told Interfax-Ukraine.
“If these changes are made to the Tax Code of Ukraine, it will actually mean that UAH 50 billion of export VAT, which, after a long struggle, finally began to be returned in a timely and transparent manner and without corruption schemes, will be taken away from agricultural producers,” the Ukrainian Agribusiness Club’s press service reported, citing Director General of the association Taras Vysotsky.
Ukraine in 2018 retained exports of semifinished carbon steel products in kind at the level of 2017, totaling 6.291 million tonnes.
Ukraine’s State Fiscal Service said in a customs statistics report that exports of semifinished carbon steel products in monetary terms grew by 18.2%, to $3.003 billion.
The bulk of semifinished carbon steel products was exported to Italy (34.24% of total exports in monetary terms), Egypt (15.53%), and Turkey (14.78%).
Last year Ukraine imported 43,880 tonnes of semifinished carbon steel products, which is twice up year-on-year. Imports in monetary terms grew by 2.2-fold, to $26.412 million.
Imports of semifinished carbon steel products originated from Russia (97.9%), Kazakhstan (1.44%) and the United States (0.5%).
In 2017 Ukraine cut exports of imports in kind by 18.8% from 2016, to 6.292 million tonnes, while exports in monetary terms increased by 14.9%, to $2.542 billion.
Italy accounted for 30.61% of exports in monetary terms, while the share of Turkey was 17.02% and that of Egypt – 16.28%.
Imports of semifinished carbon steel products in 2017 totaled 22,038 tonnes, which was 20.1% up from 2016. Imports in monetary terms grew by 85.4%, to $12.091 million.
Most of semifinished carbon steel products were imported from Russia (95.48% of total imports), Kazakhstan (4.03%), and Bulgaria (0.25%).
National Nuclear Generating Company Energoatom reduced power generation by 1.4% year-on-year in 2018, to 84.626 billion kWh, the company has said. The electricity generation target was met by 102%. Electricity sales totaled 79.609 billion kWh compared to 80.502 billion kWh a year previously. Energoatom’s share of total electricity sold to Energomarket state enterprise was 54%, and the share of total electricity generation in the country was 53%.
The company sold electricity worth UAH 52.682 billion (including VAT) on the wholesale power market, which is 14.4% more than in 2017.
Capital investment totaled UAH 10.773 billion compared with UAH 5.9 billion in 2017.
The company sent UAH 8.58 billion to the budgets of all levels and insurance payments came to UAH 2.038 billion.
Capacity use was 69.6%, which was 1 p.p. less than a year previously.
Twenty one malfunctions were recorded at Ukrainian nuclear power plants in the reporting period, five more than a year ago. Radiation levels at Ukrainian NPPs were normal over the period.
Energoatom is the operator of all four Ukrainian-based operating nuclear power plants, which have 15 VVER reactors with an overall generating capacity of 13.835 gigawatts.
The company also operates the Tashlyk hydroelectric pumped storage power plant with a 302 MW capacity in a turbine mode and Oleksandrivka hydropower plant with an 11.5 MW capacity.
Novus Ukraine LLC (Kyiv), the managing company of the network of Novus hyper- and supermarkets and Novus Express convenience stores in Ukraine, at the end of 2018 opened an A class logistics center of 7,000 square meters in the village of Sofiyevska Borschahivka near Kyiv. According to the press service of the retailer, the new warehouse will allow increasing centralization of supplies to the stores of the network, as well as freight turnover of its own logistics by 30%. The facility will serve Novus stores in Kyiv region, as well as wholesale buyers. The delivery of goods from the warehouse to the network stores will be carried out by the contractor.
According to the Novus website, as of January 14, 2018 the network in Ukraine included 43 stores. The overwhelming majority of objects operates in Kyiv and Kyiv region – 34 outlets. In 2018, the retailer opened five new stores: four in Kyiv, and one in Irpin.
As reported, at the end of 2017, the EBRD opened a credit line of up to $25 million to Novus Ukraine for a period of seven years to support the expansion of the supermarket chain and the construction of a logistics center in Kyiv region.
Novus Ukraine LLC was established in 2008. The same year the first Novus supermarket was opened in the country.
