Ukrainian Parliament's Tax Committee pushes for soy and rapeseed export duty, while Agrarian Committee opposes – UAC

Ukrainian Parliament's Committee on Agrarian and Land Policy has rejected the proposal to introduce a 10% export duty on soybeans and rapeseed, according to a statement by the Ukrainian Agri Council (UAC).

At a parliamentary committee meeting on July 7, 16 members voted against the measure.

"Despite the clear position of the Agrarian Committee, the Committee on Finance, Tax and Customs Policy is, on the contrary, recommending the introduction of these duties," the UAC said.

The Rada is preparing to consider the so-called "soy and rapeseed amendments" as part of bill No. 13157, which is being prepared for its second reading. The bill also includes other tax initiatives, including an amendment concerning the payment of patronage dividends within agricultural cooperatives.

The "soy amendments" refer to changes made to Ukraine's Tax Code at the end of 2017, which addressed VAT refunds on soybean and rapeseed exports.

Stepan Kapshuk, Director General of the Ukroliyaprom association, has for several years advocated a ban on exporting 50% of the rapeseed harvest to increase the capacity utilization of Ukrainian processing plants, which, particularly in 2024, faced significant shortages of raw materials.

Subsequently, Dmytro Kysylevsky, Deputy Chair of the Parliamentary Committee on Economic Development, proposed bill No. 13134, which includes amendment No. 40 introducing a 10% export duty on rapeseed and soybeans. He argued that Ukrainian processing plants are operating at 35% below capacity, and fully utilizing them could generate an additional UAH 7.3 billion for the state budget – funds that could support the Armed Forces of Ukraine. Furthermore, $238 million in additional revenues could fund dozens of new plants and create thousands of jobs.

Several industry associations have criticized the legislative proposal titled "On Amendments to the Tax Code of Ukraine Regarding Expanded Access to Medicines Through Managed Entry Agreements." The proposal includes export duties on soybeans and rapeseed. Business associations argue that such measures discriminate against small and medium-sized producers, aim to increase profits for processors at the expense of smaller farmers, and violate the terms of Ukraine's Association Agreement with the EU.