Draft law No.9202 amending the Law “On Export Duty Rates for Some Oilseeds” has been registered in Parliament. The bill is aimed at restoring a 16% export duty for some of these commodities, reports UkrAgroConsult.
In particular, it is proposed to impose a 16% export duty on linseed, false flax seed, striped sunflower seed, and sunflower kernels, if these commodities are exported in primary packaging of less than 25 kg.
According to an explanatory note to the bill, oilseed exports have been charged with a 10% duty since 2012, and the duty on exports to the EU is annually reduced by 0.8%. The current law stimulates processing oilseeds into oil but at the same time makes production of food seeds for export non-competitive.
In the opinion of the draft law’s authors, the restoration of the 16% export duty for the above-mentioned commodities will stimulate processing linseed, sunseed and false flax seed into bird feeds or confectionery items and snacks in Ukraine, as well as further export of these finished products.
Market share - 17.7%