Mikhail Sokolov became the member of the working group on agrarian sector reform under the Government of Ukraine

Mikhail Sokolov, Executive partner of Kesarev Consulting, was invited to join the working group under the Government of Ukraine on agrarian sector reform. In the group, the will represent the Ukrainian Agrarian Council (Mikhail Sokolov is the Council’s Deputy Chairman). 

The Working group for development of proposals to solve key problems of agricultural sector has resumed its work at the instruction of Ukrainian Prime Minister Volodymyr Groisman on May 31, 2016. The group includes officials of the Ministry of Agriculture, Ministry of Finance and members of agricultural associations. The chairman of the group is Stepan Kubiv – First Vice Prime Minister – Minister of Economic Development and Trade of Ukraine. 

During the group’s first meeting on July 12, 2016, the agrarian associations proposed a number of initiatives related to the industry’s taxation. 

Mikhail Sokolov presented the draft law, developed by Kesarev’s team of experts within the framework of the project supported by the European Commission. The draft provides for introduction of the minimal social tax liability on paying unified social tax and personal income tax by owners or tenants of agricultural lands per a hectare basis. 

The initiative, supported by Agrarian Ministry, Ministry of Finance, State Fiscal Service and agrarian associations, would allow bringing illegal tenants of agricultural lands out of the shadows. Following the results of discussion, it was decided to submit the draft law to the Ministry of Finance and State Fiscal Service for consideration.

Other initiatives, presented to officials at the group’s meeting are as follows:

– preservation of special VAT regime for animal breeders till January 01, 2018;

– introduction of reduced VAT rate for animal products after cancellation of special VAT regime according to the practices of the EU member states;

– introduction of simplified VAT taxation system for small agricultural producers (the mechanism of so-called «compensation rate»).