Revision of benefits for Ukrainian agricultural producers will not lead to increase in food prices, incomes and fees minister Oleksandr Klimenko told a briefing in Kharkiv, when asked about the possibility of cancellation of benefits for farmers and, in particular, abolition of the fixed agricultural tax.

The minister acknowledged the need to reform tax policy in the agricultural sector, but urged not to politicize the issue.

Klimenko added that a tripartite committee, consisting of experts from the Economy Ministry, the Finance Ministry and the Incomes and Fees Ministry of Ukraine, was set up to revise the benefits. According to him, the commission makes an inventory of benefits in order to identify not effective grants.

The incomes and fees minister stressed that revision of concessions in the agricultural sector will be decided in close consultation with farmers, and will not lead to rising prices. The minister also expressed his belief that any benefits should encourage the production, not lead to its stagnation.

"We will do it in concert with the business and the companies, which form the sector. We will do it in concert with the Agrarian Policy Ministry. There will be no increase in food prices, although the industry will have the same momentum of development, as today," Klimenko noted, speaking of the agricultural benefits.

According to him, the agricultural sector of Ukraine's economy is one of the strongest.

"The development of the agricultural sector in Ukraine is the point of growth, which should be stimulated by the government. It is our strong point," Oleksandr Klimenko added.

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