That restrains the development of new farms

This view was expressed by the head of the department of financial and credit and tax policy of the National Research Center "Institute of Agrarian Economics", Ph.D. Leonid Tulush, the press service of the Institute of Agrarian Economics reports.

According to Tulush, among the expected results of the Government's Concept for the Development of Farms for 2018-2020, there is an increase in the number of farms - with a land bank of not more than 100 hectares - not less than 10%.

"Obviously, it will not be possible to achieve such a result without applying measures to stimulate the transformation of high-value households into business entities," says Leonid Tulush.

In his view, along with the uncertainty of the taxation mechanism, among the largest encumbrances for potential farms created on the basis of registration of a sole proprietor (entrepreneur), there is also the mandatory payment of a single social contribution "for oneself" and for members of such a new farmer economy.

"The price of the issue will reach about 10 thousand UAH per year per person from January 1, 2018. This amount is unacceptable for the majority of subjects of agrarian microbusiness with an operating area of up to 20 hectares," says the expert.

He added that in order to stimulate the registration of high-value households by entrepreneurs and the creation of new farms (based on SEI), it is necessary to introduce a new tool for supporting such entities.

According to him, this mechanism should provide for the repayment of only a part of single social contribution by the farms in the first years of operation. The rest should be assumed by the state - due to the appropriate surcharge, the source of which should be the appropriations laid down in the budget program
"In this case, the chairman and members of the new farms will be credited with the full period of the relevant activity (month in a month) into pensionable retirement and this will be an effective incentive for registering the FLP and creating a farm on the basis of high-value households," the expert said.
According to the calculations of the scientists of the Institute of Agrarian Economics, half of the budget resource laid down under the budget program will be enough to finance the corresponding surcharges in 2018.
"It will be enough for the formation of proper pension experience among members of the new farms in the form of emergency," - summs up Leonid Tulush.