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Ukraine prepare to reduce VAT rate for domestic producers against WTO rules |
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KIEV, July 12. State Tax Service of Ukraine offers to reduce VAT for domestic producers in Ukraine up to 7%, says "Kommersant-Ukraine". At the same time all the exceptions on income tax (UAH 2.1 billion) and VAT (UAH 5.6 billion), which are not collected from medicines, services, education, media, grains, will be canceled. Today, the Ministry of Finance of Ukraine will hold a discussion on a draft of radical tax reform, prepared by tax authorities. In accordance with the project, instead of 20% VAT, 12% will be levied on import of all kinds of services and industries that belong to natural monopolies, and up to 7% - on internal operations. This will lead to Ukraine's conflict with WTO, warns State Tax Service. "Goods imported to Ukraine can not be granted less favorable conditions than the products of national origin", - reported the State Customs Committee. But if Ukraine lowers the rate of VAT, this will lead to budget losses of UAH 73.5 billion. Tax officers have already found ways to compensate for these losses and get UAH 98.2 billion. The most unexpected proposal is the introduction of VAT at a rate of 2.5% with a decrease to 2% in six months. This compensator will give the largest amount of revenue - almost UAH 54 billion (exporters will pay UAH 17.8 billion, while domestic consumers - UAH 36 billion). As noted, UAH 24.5 billion will be saved on VAT refund, and UAH 14.3 billion - from legalization. "Further increase in revenues is expected due to a sharp rise in the value added - about UAH 40 billion a year, since 2014" - reported State Tax Service. Newer news:
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