The Verkhovna Rada of Ukraine on Thursday adopted in its entirety, by 313 votes, the bill "On Amendments to Certain Laws of Ukraine" (regarding the taxation of agricultural enterprises).
The bill proposes to postpone until January 1, 2006 the effect of the Law of Ukraine "On Amendments to Certain Laws of Ukraine on the Taxation of Agricultural Enterprises and Support for Social Standards of Their Employees" for the purpose of its further revision. In this connection, it is proposed to retain for the next year the existing procedure for value added taxation of agricultural production.
Corresponding amendments are being introduced to the Law of Ukraine "On the Fixed Agricultural Tax," according to which, starting from the new year, contributions to the mandatory state pension insurance will be collected from agricultural producers at a rate of 6.4%, and contributions to mandatory state social insurance – on a general basis.
In addition, such mandatory payments as the tax on owners of vehicles and other self-propelled machines and mechanisms; the levy for the construction, reconstruction, repair and maintenance of public roads of Ukraine; and the fee for the purchase of a trade patent for conducting trading activity are retained as part of the fixed agricultural tax.
Also, for payers of the fixed agricultural tax in 2005-2006, a special rate is established for contributions to mandatory state pension insurance – in the amount of 20% of the general rate. An annual increase of such rate by 20 percentage points is also envisaged until the general rate of the levy for mandatory state pension insurance is reached.
Based on materials from "LIGABiznesInform".