July 10 2003, 16:15 Interfax-Ukraine

Kuchma signed law about prolongation of fixed agricultural tax to 2009

President of Ukraine Leonid Kuchma has signed the law, prolonging the effect of fixed agricultural law from January 1, 2004 to December 31, 2009. According to President's press-service, the law will come into force since January 1, 2004.

The law was adopted by Parliament on June 19 this year.

The law stipulates eligibility of agricultural enterprises for the right to pay the fixed agricultural tax if their earnings from sales of agricultural products in the total value of revenue constitute 75 percent (according to the current law - 50 percent). The farming businesses will have to pay the tax within 30 calendar days, following the last calendar day of the basic reporting month.

Fixed agricultural tax, introduced by Verkhovna Rada since January 1, 1999, incorporates 11 kinds of tax payments. Currently the agricultural producers apart from the fixed tax are paying only excise duties. In 2002 the value of fixed agricultural tax, paid into the state budget, increased 2.5 times from the value, paid in 1999, and the rate of payment increased from 37 to 88 percent. Last year the country's farming and processing industries paid into the state budget 5.8 billion hryvnias (5.33 hryvnias = $1), which is 50 percent more than the year before.