Analysis of Trends in Taxation and Foreign Economic Operations with Cereal Products in Ukraine

Natalie Yuriivna Shevchenko

doi:10.11648/j.ijefm.20200805.13

Abstract

The article is devoted to the evaluation of the current state of implementation of Ukraine’s foreign economic operations using cereal crops as an example. The dynamics and the structure of cereal crops products export and import over the past decades have been studied. The facts on increase in Ukraine’s export capacity exactly in the area of grain production were established. The world market of cereal crops products was considered and the share of Ukraine in world grain production, which currently does not exceed 2%, was separated. The state and trends in taxation of foreign economic operations with agricultural products were estimated. The interdependence of volumes of agricultural products imports and the customs duty, excise duty and value-added tax to the State Budget during 2005–2019 was established. The decrease in imports of Ukrainian agricultural products was defined, which affects the amount of tax revenues from indirect taxes. It is also established that the gradual cancellation of customs duty on agricultural products during the transition period will lead to the drop in the State Budget revenues and domestic products competitiveness if Ukraine does not take compulsory measures to improve its market quality and stability of positions.

Highlights

Introduction and MethodsPartsTo conduct a detailed analysis, to determine the trends and directions of Ukraine’s trade policy regarding agricultural products, we will review the foreign economic situation and trade in agricultural products, in particular using cereal products as an example.In Ukraine, a priority socio-economic role has always been ascribed to the cultivation of cereals due to the favorable natural and climatic conditions and traditionally high share of sowings
It might be noted that the country is building its export capacity in this area and trends towards its development remain positive
In Ukraine, the percentage of exports of agricultural and food products in gross agricultural production was 16% compared to 25% in Poland and 53% in France and Germany

Summary

Introduction

Introduction and MethodsPartsTo conduct a detailed analysis, to determine the trends and directions of Ukraine’s trade policy regarding agricultural products, we will review the foreign economic situation and trade in agricultural products, in particular using cereal products as an example.In Ukraine, a priority socio-economic role has always been ascribed to the cultivation of cereals due to the favorable natural and climatic conditions and traditionally high share of sowings. Organisation of the United Nations and the Agricultural Market Information System data, domestic grain exports to the world market is a record high in 2018–2019 marketing period and reached about 48 million tonnes, which is almost 12% of its total global indicator (Table 1) [2, 9].

Results

Conclusion