VAT - 20%: what do milk producers about it?

Источник: The DairyNews
Most of the major producers refused to discuss the VAT increase to 20% since January 2019, but a number of market participants expressed their views on the impact of the VAT factor on the industry. Read more in the material of The DairyNews.

The Federal law of 03.08.2018 No. 303-FZ "On amendments to certain legislative acts of the Russian Federation on taxes and fees" implies that the VAT rate in the Russian Federation will increase by 2 percentage points since 1 January 2019.  THE LINK TO THE LAW:

For the dairy category (in most of the range) the preferential VAT rate of 10% is maintained. However, in general, there can be an increase in prices in the industry, as VAT is laid by many participants in the chain and ultimately affects the price of the goods on the shelf.

The representative of the retail chain “Metro” noted in the commentary to The DairyNews that the network takes into account the factors of competitive activity, incoming prices from suppliers and others, but the pricing policy does not imply a direct change due to the growth of the VAT rate.

Most sellers are not directly dependent on taxes, but connections are still formed.

- In the dairy business, everything is interconnected and despite the fact that the preferential VAT rate of 10% remained the prices for energy and logistics have increased. The cost of the product is growing from year to year. Under these conditions, the procurement price of milk should increase to maintain the balance, - said Stanislav Goryansky, Director of Agrofirm “Detchinskoye".

In the production of finished dairy products, growth also depends on ingredients that are not in preferential categories. According to Soyuzmoloko, the average increase in the cost of production of dairy products can reach 5-7% in 2019.

Small farms do not see any changes.

- I do not notice a rise in food prices with an increase in the VAT rate. My company is not affected, as the rate for us has not changed, it is 10%. If we talk about the market as a whole, I believe that it will develop according to the usual scenario. Weak players will go bankrupt, strong ones will look for new ways of development. In any case, you should not be expected global changes from VAT increase by 2%, - said farmer Alexander Sayapin.

At the same time, against the background of increasing VAT, there are other factors that indirectly affect the cost of the finished product and there are a lot of them - from logistics costs to the peculiarities of food production in each case.

The cost of feed plays a significant role in milk production.

Earlier, the Ministry of agriculture sent an appeal to the sectoral agricultural unions to provide a forecast of growth in the cost of production due to the increase in the VAT and excise rates in 2019. The Ministry explained this as a necessary part of the monitoring duties of the Ministry of agriculture.

Read full article in Russian on © DairyNews.ru

30.01.2024
В России наметилась устойчивая тенденция сокращения поголовья коров: их количество снижается ежегодно, а в 2023 году достигло исторического минимума. The DairyNews обсудил с экспертами отрасли причины уменьшения молочного стада в России. Участники рынка поделились мнением о происходящем и рассказали, как избежать катастрофических последствий для производства молока, молочных продуктов и говядины.
Читать полностью