September 6, 2011
Ukraine's grain export tax stays till end 2011
Ukrainian grain export tax will remain till the end of 2011, according to Anatoly Rozgon, the deputy head of the Agriculture Ministry's agricultural markets department on Monday (Sep 5).
Rozgon said the ministry's proposal for abolition of the tax had been rejected by the government, as it would have to be agreed with the International Monetary Fund and new sources of revenues would have to be found to cover resulting losses to the state budget.
Rozgon said on August 26 that the Agriculture Ministry had drafted amendments to the current legislation providing for the abolition of the current grain export taxes.
Rozgon also said, "The government is not satisfied with the current pace of grain export. We have submitted our proposals to the Economy Ministry. I think the draft will be approved shortly."
The government imposed export duties on grain since July 1 as a result of last year's drought. Wheat export duty is 9% of the contract price but not less than EUR17 (US$24) a tonne. The corn export duty is 12% but not less than EUR20/tonne (US$28). The barley export duty is 14% but not less than EUR23/tonne (US$32.40).
Due to the imposition of export duties, Ukraine's grain export fell in July to 300,000 tonnes from 1.5 million tonnes in June. In the first 27 days of August, Ukraine's grain export totalled 900,000 tonnes compared with 1.3 million tonnes in the same period in 2010.
Ukrainian exporters cannot compete with their Russian counterparts, whose grain is at least US$30 a tonne cheaper, Rozgon said.