Ukrainian Anti-Crisis Law Provided Positively Impact on Agrarians
OREANDA-NEWS On 13 November was announced, that analysts positively evaluated the impact of the law on priority measures to mitigate negative effects of financial crisis in Ukraine that was adopted by Verkhovna Rada and signed by President of Ukraine Viktor Yushchenko on the 4th of November, 2008.
The adopted document also introduces changes to the Fixed Agricultural Tax (FAT) that abolished the restrictions of its validity until December 31, 2009. In addition, the law reserves preferential taxation regime of the Value Added Tax (VAT) for agricultural producers.
According to analysts who estimate the agricultural sector, the changes included in the anti-crisis law should continue government support to Ukrainian agricultural business and will help large holdings, such as ASTARTA, to maintain profitability and continue development in the current financial instability situation.
Another positive news for sugar producers is the increase of subsidies for sugar beet cultivation by 100% to 1 500 hryvnias per hectare included in the draft State Budget for 2009 prepared by the Cabinet Of Ministers. It would stimulate the agricultural producers to increase production on the wave of rising international sugar prices.
Comment of Viktor Ivanchyk, CEO of ASTARTA Holding N. V.:
"The adopted decision will positively impact our company. We often use conservative approach in our forecasts. So, the extension of tax benefits should positively effect our plan targets for the medium term, compensating for the expected impact of slow economic growth in the world and Ukraine, as well as decreasing global prices for grain and oilseeds".
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