The draft law on the extension of export duties on grain breaches the tax laws fundamentals
Kyiv. October 4, 2011
The deed drafted by the Ministry of Economic Development and Trade that
stipulates a year-long extension of export duties for wheat, barley and
corn (until January 1, 2013) breaks the fundamentals of the Tax Code of
Ukraine, an opinion of the lawyers interviewed by Interfax-Ukraine.
"Subclause 4.1.9. of clause 4.1. of Article 4 of the Tax Code determines
the principle of stability of the tax legislation. Changes in any
components of taxes and charges may not be introduced later than six
months prior to a new budget period, within which new rules and rates
will run", believes Larisa Poberezhniuk, Partner of
“Pavlenko&Poberezhniuk” Law Group...
Andrii Zablotskyi, Volkov&Partners lawyer, in his
turn, feedbacked that the extension of the actual and newly introduced
export duties may find an adverse response of WTO partners.
"The terms of Ukraine’s accession to the WTO do not contain an explicit
ban of use of export duties. However, the Ukraine’s Working Party Report
(IV Section) reads that export duties could create obstacles to
international trade and so must be lowered,” emphasized Mr. Zablotskyi.
He assumes that export duties introduction has less distorting effect
for trade than export quotation or licensing, but duties themselves do
not favour an upward performance of the agricultural market.