February 3 2004, 09:47 APK-Inform

Government promised help in solving export VAT refund issue

A Supplement to Memorandum about Coordinated Activities in the Market of Bread and Bakery Products was signed in the Cabinet if Ministers on February 2.

The Memorandum in question had been signed between the CM and agro-industrial NGO's - the All-Ukrainian Union of Agricultural Enterprises, Ukrainian Grain Association (UZA), the Bread Baking Industry Association "Ukrkhliboprom", the All-Ukrainian Association of Bakers - on November 13, 2003.

According to the newly signed document, the government has promised to apply all the effort in order that the issue of VAT compensation to the exporters of agricultural products be solved in the nearest time (the cancellation of VAT refund was stipulated by one of the clauses of the Law about 2004 State Budget).

Ukraine's Deputy Prime Minister for Agriculture Ivan Kyrylenko said at the signing ceremony: "We have agreed with the economic block of government and the relevant Committees of Verkhovna Rada (Agrarian and for the Issues of Banking Activities and Finance) that the government would initiate passage of the [VAT refund] bill - either at full, or only in the fragments, relative to agro-industrial complex".

This would mean restoration of the export/import procedures in the shape they existed in autumn 2003 - VAT payments in bills at imports and the possibility of VAT mutual offset at exports, Kyrylenko said.