The All-Ukrainian Agrarian Council called on the government to introduce a preferential excise tax on fuel for farmers.

The All-Ukrainian Agrarian Council urged the Cabinet of Ministers to submit to Parliament a draft law on the preferential excise tax rate on fuel for farmers.

According to the association, the law amending the tax code concerning the excise tax came into effect on September 1, 2024. The law gave the government three months to consider the issue of establishing a reducing coefficient to the excise tax rates on diesel fuel for agricultural producers.

'Three months have passed since the law came into force, but the relevant instruction has not yet been fulfilled. Although on September 10, 2024, the Cabinet of Ministers issued the relevant instruction. According to this document, the Ministry of Finance, the Ministry of Agrarian Policy, the Ministry of Economy, the Ministry of Digital Transformation, the Ministry of Justice, the State Tax Service, and the State Customs Service are instructed, in conjunction with interested authorities, to take necessary measures by November 11, 2024, and inform the Verkhovna Rada of Ukraine and the Cabinet of Ministers accordingly, and submit a corresponding draft act for consideration to the Cabinet of Ministers in the established manner'

The association noted that, according to the law, the excise tax on fuel will gradually increase from EUR139 to EUR330 per 1,000 liters by the end of 2028, putting Ukrainian farmers in a non-competitive position.

The VAR called on the Cabinet of Ministers to comply with the norms of legislation and urgently fulfill its obligations to agricultural producers and introduce a reducing coefficient for the excise tax on fuel.