March 16 2005, 13:03 APK-Inform

Socialist Party proposes to pay VAT refund debt with grain instead of money

Parliamentary faction of Socialist Party of Ukraine has brought up a proposal to undertake a series of measures for support of the country's agrarian sector.

According to a statement of the Faction Head Olexandr Moroz, published by the parliamentary newspaper Holos Ukrainy (Voice of Ukraine) on March 16, the Socialist Party, in particular, suggests the government buying the grain from immediate producers and subsequently granting it as a settlement of debt to the traders, to whom "the state has owed billions of hryvnias of non-refunded VAT". According to Moroz, in such a way it will also be possible to provide farmers with the funds for spring fieldwork campaign.

The Socialist Party has also brought in a bunch of proposals as regards crediting of farming complex.

"The situation in agriculture urges efficient measures of government to save thousands of farmers and agricultural producers from bankruptcy. With low prices for grain, they have become unable to pay off the loans and to raise the new ones", the party leader said.

Besides, the socialists propose to legislatively fix the deadline for re-purchase of mortgaged grain by the producers as April 1 (the current deadline is March 1).

"Now the deadline for grain re-purchase by its producers is expiring. Bearish price situation has taken shape on the grain market and the agricultural sector has not enough current funds… The farmer might lose the money, which he failed to draw from the 2004 crop grain", explained the leader of socialists.