The Ministry of Agrarian Policy of Ukraine wants to provide support in the development of breeding livestock and poultry from the special fund from the state budget. The fund will be formed of VAT paid by the processing companies. Draft of the Resolution of the Cabinet of Ministers “On amendments to the procedure for the use of VAT paid by the processing enterprises in the special fund of the state budget” has already been published on the website of the Ministry.

Help from the special fund will be available to those agricultural enterprises that work on the program. Payments will be made in the form of co-payments or reimbursements for the value of work performed.

The Ministry hopes that the adoption of the resolution will allow to effectively support the development of animal husbandry in Ukraine, will help create a unified system of selection, create the identification and registrar of pedigree livestock.

As reported, according to the Tax Code, the 2014 VAT paid by companies that process livestock products will be charged and sent in amount of 50% — to a special fund in the state budget, 50% — to a special account opened in the organs of State Treasury.

Funds, coming into special accounts of processors are directed to pay compensation for milk and meat delivered to them. Another part of the VAT, directed to a special fund of the state budget, is the only source of funding for the program to support the development livestock.