Uman NUH | today: 01/19/2023

Tax Stimulation of Agricultural Production in Ukraine

Author(s) Nepochatenko Olena O., Doctor of Economics, Professor, Rector of Uman National University of Horticulture, Head of Department, Uman National University of Horticulture
Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Barabash L.V., , , Uman National University of Horticulture, Ukraine
Нагорна Ю. І., , ,
Category Economics
year 2020 issue Issue number 96. Part 2
pages 5-20 index UDK 336.02:631.15(477)
DOI 10.31395/2415-8240-2020-96-2-5-20 (Link)
Abstract Stimulating the harmonious development of the agricultural industry is the primary task of each country. Food security, employment and well-being of the rural population – these key factors directly affect the level of economic development of the state and its food security. From this perspective, tax incentives are not only necessary, but perhaps the most effective method of promoting the development of the industry. The last five years were marked by significant innovations in taxation for Ukrainian agriculture. In particular, the specialized agricultural tax was abolished, and agricultural producers became the payers of the single tax for the fourth group, the special regime for accumulation of value added tax was abolished, which allowed producers to accumulate significant amounts of financial resources in special accounts, which were later used to expand production. The steps taken contributed to the development of large farms, and small agricultural enterprises found themselves in a rather difficult situation. However, the example of Cherkassy oblast makes it clear that the majority of specialized producers are mostly small, as they own agricultural land of 20 to 500 hectares. Based on the current situation, the improvement of tax incentives should begin with a series of successive changes: in a single tax (fourth group) - by reducing tax rates, differentiating them with respect to organic producers and the area of the payer's agricultural land, using increasing coefficients for misuse of land; in value added tax - from the resumption of a special taxation regime for livestock (except for poultry farming); in the taxation of individuals - an increase in the level of wages of those employed in agriculture due to the establishment of a tax-free minimum.
Key words tax incentives, agricultural producers, simplified regime of food and beverage companies, forgiveness, VAT collection regime, single tax, fourth group, land area
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