Ukraine Did Not Introduce Export Duty on Soybeans and Rapeseed: Budget Lost UAH 7.3 Billion
The Ukrainian authorities considered the possibility of introducing a 10% export duty on soybeans and rapeseed, which could have provided an additional UAH 7.3 billion in revenue for the state budget and brought in $238 million in foreign currency earnings. However, due to opposition from the business community, the Verkhovna Rada did not support the corresponding initiative.
This is reported by AgroReview
The Aim of the Initiative — Supporting the Processing Industry
According to estimates from the economic committee of the Verkhovna Rada, Ukrainian soybean and rapeseed processing plants are currently underloaded by 35%. Utilizing these capacities could significantly strengthen the agricultural sector, increase the export of finished products, and boost budget revenues.
The introduction of the export duty was planned only for traders exporting raw materials, while farmers exporting their own harvests were to remain in a duty-free regime. This approach was intended to stimulate investment in domestic processing, similar to successful practices in the sunflower and roundwood markets, which had previously contributed to industrial development and attracted investment in the respective sectors.
Business Opposed, Parliament Did Not Support
According to the initiators, the introduction of a 10% duty would significantly increase the export of rapeseed oil and meal — by 300% and 200% respectively, and in the case of soybeans — by 50% and 100%. However, representatives of the business community, including the American Chamber of Commerce in Ukraine and the European Business Association, emphasized the risks of such restrictions and expressed concerns about their impact on the market.
The economic committee of the Verkhovna Rada stated: “Ukrainian soybean and rapeseed processing plants are underloaded by 35%. If these capacities are utilized, Ukraine will receive an additional UAH 7.3 billion in revenue for the state budget and $238 million in additional foreign currency earnings.”
As a result, on June 18, the Verkhovna Rada did not support the amendment to bill No. 13134, which proposed the introduction of a 10% export duty. Thus, the initiative was not implemented, and the state budget missed out on potential revenues.