Ukraine Considers Introducing a 10% Export Duty on Rapeseed and Soybeans

During a meeting of the Tax Committee of the Verkhovna Rada on June 13, lawmakers discussed the possibility of introducing the so-called “soy-rapeseed” amendment to bill No. 13134. It is proposed to establish a 10% export duty on soybeans and rapeseed. The aim of this initiative is to stimulate the development of domestic agricultural processing and increase revenues to the state budget.

This is reported by AgroReview

Key Provisions of the Initiative and Reactions from Lawmakers

The authors of the amendment, Dmytro Kysylevskyi and Andrii Motovylovets, emphasized that the new duty is not aimed against producers, but rather at limiting the export of raw materials by traders without added value. According to the proposal, producers who grow soybeans and rapeseed themselves will be exempt from this duty. For comparison, the export of sunflower seeds in Ukraine is already subject to a similar 10% duty.

“The introduction of the duty will allow Ukraine to profit from processing, rather than giving profits to EU countries, which have repeatedly expressed concerns about the large volume of raw material exports from Ukraine. The country has sufficient processing capacity: since 2022, it has increased by 3 million tons, with another 3 million tons currently under construction,” noted Dmytro Kysylevskyi during the discussion.

At the same time, some lawmakers expressed criticism of this initiative, calling it a repetition of the already well-known “soy amendment.” According to Yaroslav Zhelezniak, its implementation will only create new barriers to export and favor large processing enterprises. Committee Chairman Danylo Hetmantsev added that such measures could disrupt market competition, resulting in large exporters gaining advantages while small farmers and traders lose the opportunity to export their products directly.

Possible Consequences and Next Steps

Proponents of the duty emphasize that short logistics and the formation of added value within the country create opportunities for small and medium-sized producers. They will be able to sell their harvested crops on the domestic market with lower transportation costs, while the budget will receive additional tax revenues.

It is expected that the Verkhovna Rada will make a final decision regarding the introduction of the export duty in the near future, as the active export season for rapeseed will begin in July-August. The discussion of this initiative is taking place against the backdrop of a broader debate on supporting the processing industry and reducing Ukraine’s dependence on raw materials in international markets.