With the use of the VAT quasi-accumulation regime, 30 agricultural enterprises received more than 70% of the budget subsidies

Submitted by bashun on Tue, 10/03/2017 - 09:37

The distribution of the budget subsidy within the program 2801580 "Financial support to agricultural producers" in the direction "Budgetary subsidy to stimulate the production of agricultural products", which provides for the use of the mechanism of quasi-accumulation of VAT, according to the results of six payments, is significantly uneven.

This was reported 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, reports AgroPerspectiva.
The share of poultry enterprises in budget subsidies for July did not exceed the established limit of 50%.
"However, it is almost 55% since the beginning of the year, which contradicts the norm stipulated in Article 4 of the Procedure for the Distribution of Budget Subsidies for the Development of Agricultural Producers and the Stimulation of Agricultural Production in 2017, approved by Resolution No. 83 of the Cabinet of Ministers of 08.02.2017," says the expert. .
This is the result of the incorrect accrual of subsidies in May-July for March-May, in which the share of poultry enterprises was much higher than the established limit of 50%, exceeding, for example, in June (by grants for April) a record level of 66%.
The budget subsidy for July was able to receive more than 800 business entities, or more than 37% of the total amount entered in the Register of Budget Subscribers.
At the same time, the share of the five largest recipients of subsidies, which are exclusively represented by poultry enterprises, exceeds 46% of the total payments, Leonid Tulush has said. Ten agricultural enterprises - the largest recipients of state financial support - account for about 55%, for twenty - almost 65% of all subsidies in the mode of quasi-accumulation of VAT. The share of the top thirty recipients exceeds 70% of the total amount of grants paid since the beginning of the year - 2315 million UAH. The fifty largest recipients account for almost 75% of payments under this direction of state support for the development of agricultural production.
"The share of other participants in the program of state financial support, which in 2017 was paid a budget subsidy - more than 1200 agricultural enterprises (!) - according to the results of six payments is only about a quarter of the total amount of subsidies paid," says the expert.
According to him, according to the results of six payments made this year, the agricultural enterprise - the leader in obtaining budgetary subsidies - has already received them in the amount of 426.2 million or 18.4% of the total amount. In addition, taking into account the enterprises interconnected with it, the amount of grants received amounts to 907.5 million UAH, which is about 40% of the total amount of state financial support paid at the beginning of September 2017 using the mechanism of VAT quasi-accumulation.
"So, despite the declared automaticity of this form of state support, the effect of the subjective factor still remains - given that individual enterprises - members of agro-industrial groups have the opportunity to " drive up " the large amounts of special VAT, realizing that a large part of such amounts will return to them back in the mode quasi-accumulation of VAT. The presence of such significant distortions indicates a lack of effectiveness of this program of state support due to the imperfect mechanism of its functioning, which should be strengthened with the involvement of both practitioners and academics, not only representatives of public organizations of farms ", - concludes Leonid Tulush.

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