Ukrainian enterprises engaged in the processing of soybeans and rapeseed are currently underloaded by about 35%. If these production capacities were fully utilized, the state could have received an additional ₴7.3 billion to the state budget and around $238 million in foreign currency revenues. To achieve this, it was proposed to introduce a 10% export duty on traders’ operations with rapeseed and soybeans, while maintaining a duty-free regime for farmers exporting their own products.
This is reported by Бізнес • Медіа
The Goal of Implementing the Export Duty
The main idea of the proposal was to encourage large traders not to export raw materials but to invest in the establishment of processing plants within the country. A similar approach has already been implemented in the sunflower and roundwood sectors, leading to significant industrial investments in these areas. It was anticipated that the introduction of the duty would allow for a 300% and 200% increase in the export volume of rapeseed oil and meal, respectively, and a 50% and 100% increase for soybean oil and meal.
The Position of Business and the Parliament’s Decision
However, the initiative faced resistance from the business community. The American Chamber of Commerce in Ukraine (ACC) expressed concerns about the risks of implementing an export duty on oilseeds, and similar concerns were raised by the European Business Association. 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 on soybeans and rapeseed.
“As stated by the Economic Committee of the Verkhovna Rada, Ukrainian processing plants for soybeans and rapeseed are underloaded by 35%. If these capacities are utilized, Ukraine will receive an additional ₴7.3 billion in revenues to the state budget and $238 million in additional foreign currency revenues.”