In the near future, the government will stop refunding export VAT on vegetable oils. The respective proposal has been put forward by the State Fiscal Service. The exception will be sunflower oil in bottles of up to 5,000 cm3. The implications for the market will be as follows:
- a decline in sunflower oil exports that will underpin prices for all vegetable oils in the world market
- a drop in fat-and-oil producer revenues in view of low world prices for vegetable oils
- a rise in margin of bottled oil – this implies growth in its production and exports. This can be considered as a positive point because the matter concerns production of a product with higher added value
- strengthening of Ukraine’s position in the world market of refined and bottled sunflower oil. At the moment, the country is the top-ranking producer and exporter of sunflower oil, but trails far behind in the refined and bottled product segment
- investment in upgrading the plants because refining and bottling facilities in Ukraine are underdeveloped now.
Will Ukraine’s fat-and-oil sector enter a new stage of development? What markets and prospects are opening up for Ukrainian producers?
More detailed information on the fat-and-oil industry and bottled oil market is available in UkrAgroConsult’s studies.
The State Fiscal Service of Ukraine (SFSU) has prepared proposals on amending the Tax Code