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Ukrainian Grain & Oilseed Market

Ukrainian Grain&Oilseed Market

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Deputy Pashynskiy initiates biofuel producers 10 years tax exemption

23.02.2007 09:00 "Agro Perspectiva" (Kyiv) — As to draft Law № 3158/1 «About Promotion of Usage of Biological Kinds of Fuel» (registered in Parliament Feb 16), VR deputy Serghiy Pashynskiy has proposed to Parliament to oblige Cabinet to exempt from taxation within

2008–2017 country economic entities profits received from biological kinds of fuel production.

As to Pashynskiy proposal, new Law should (within 6 months since being adopted by Parliament) oblige Government to bring amendments to some Ukrainian laws. Proposed amendments stipulate that, in part., country biofuel producers should be temporary — within Jan 1/08-Jan 1/17 — released from profit taxes.

As to draft Law, tax payers will direct additional financial means (deliberated due to taxation privileges) to boost their production rates, update material/technical facilities and introduce newest biofuel production technologies.

As well, draft Law provides that Government should release (within Jan 1/08-Jan 1/13) from entry duties Ukrainian companies importing equipment/materials for biofuel production on condition if these goods are intended for Ukrainian companies biofuel output or if similar equipment/materials with analogous parameters are not produced in Ukraine.

Draft Law says these equipment/materials import procedure, denominations and number should be additinally determined by Cabinet.

Besides, draft Law also stipulates exemption from entry duties (within Jan 1/08-Jan 1/13) of materials, equipment and components imported to be used for production of equipment intended for biofuel output.

As well, draft Law stipulates equipment/materials imported into Ukraine for biofuel output should be exempt (within Jan 1/08-Jan 1/13) from import VAT, — if these equipment/materials are imported into Ukraine by domestic companies.

Draft Law says similar privileges should cover as well import of materials, equipment and components imported to be used for production of equipment intended for biofuel output.

Upon whole, proposed draft Law outlines main juridical, economic and organizational principles to stimulate biological kinds of fuel output/consumption and to develop Ukrainian national biofuel market based on biomass (as renewable resource for biological kinds fuel production) usage.

As earlier reported, Dec 22, 2006 Cabinet had issued Decree stipulating Ukrainian Program of Diesel Biofuel Production Development for 2007–2010.

As to Program, Ukraine should create till 2010 not less 20 biodiesel production plants characterized with various annual productivity (from 5,000 MT up to 100,000 MT), with plants total annual productivity reaching 623,000 MT.

< Jan fresh beef output down 21%, to 9,300 MT

All news for
23.02.2007

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