Source: Ukragroconsult (Ukraine)
Today, the President of Ukraine signed Law No. 4536 “On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine in Connection with the Adoption of the Law of Ukraine ”On Integrated Prevention and Control of Industrial Pollution“ and with the Aim of Improving Certain Provisions of Tax Legislation,” which amends tax and customs legislation and provides for the introduction of export duties. The document is awaiting publication and will come into force in the near future.
Until January 1, 2030, a 10% export duty applies to soybeans and rapeseed, decreasing 1% yearly to 5%. At the same time, domestically grown products will be exempt from duties. New soybean and rapeseed rules apply the day after the official law publication.
The main goal of these changes is to limit the export of unprocessed raw materials and create incentives for the development of domestic processing enterprises. The government expects that this innovation will increase the production of vegetable oils and meal in Ukraine, as well as increase the added value in agriculture.
For farmers, this means that they will need to revise their export strategies. Some exporters may lose part of their margins due to duties, while processing enterprises will gain competitive advantages in the form of more affordable raw materials. At the same time, experts note that the effectiveness of such measures will depend on state support and investment in processing infrastructure.
The introduction of duties has sparked debate among market participants. Some traders believe that export restrictions could reduce the attractiveness of the Ukrainian market to foreign buyers. Others point out that this is a step towards forming a full-fledged value chain within the country and strengthening Ukraine’s position as a manufacturer of finished products, rather than just a supplier of raw materials.