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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Agricultural Producers Keep Their Pants Up While their pockets are emptied from afar

13 November, 2012 - 00:00

The President has issued eight economic decrees aimed at fulfilling IMF demands. Among these there are decrees on a fixed agricultural tax, which will supplant ten currently existing taxes and fees and on canceling and restructuring the tax arrears of all agricultural enterprises and sugar plants as of January 1.

Giving a speech at the region council meeting, Deputy Prime Minister Serhiy Tyhypko noted that the first decree stipulates a Hr 500 million total tax cut for agricultural producers. In 1998 these taxes will total Hr 1.8 billion. The second decree stipulates canceling and restructuring back taxes totaling Hr 3.3 billion. The decree also cancels penalties totaling Hr 142 million.

The government has obviously been convinced that the agricultural producers have nothing left to give. The question is whether this measure will help them. According to Tyhypko, it is very unpopular with economists and financiers. But the government took the responsibility for bans on agricultural export, which caused great damage. The government also advised the President to cancel tax debts, “probably for the last time.”

Who will cover the state budget losses, when the government intends to cut revenues by Hr 1.6 billion and expenditures by Hr 2.75 billion? Apparently this task will again be put on agriculture. Their share in oil consumption is 20%. The President issued a special decree according to which the excise taxes on oil and oil products might be tripled. This way the gap between oil prices and agricultural products prices will grow wider and the peasants be forever enserfed.

Photo by Andriy Mosiyenko:

Serhiy Tyhypko demands the press support the President’s economic edicts

 

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