March 18 2004, 10:21 UNIAN

Introduction of VAT bank accounts should be accompanied by decreasing of VAT rate - a parliamentary

Introduction of special VAT bank accounts should be accompanied by the decreasing of VAT rate, on March 17 the Head of Verkhovna Rada Budget Committee Peter Poroshenko said. According to him, the VAT rate decreasing will not influence on the state budget receipts due to management improvement. This process will have to be the so-called carrot-and-stick policy for taxpayers: introduction of special VAT bank accounts as a stick and decreasing taxes rate as a carrot.

On March 1 the President of Ukraine Leonid Kuchma criticized the government attitude on the VAT problem solution. At the same day the President signed the bill on Introduction of Special VAT Bank Accounts. L. Kuchma obligated the Cabinet of Ministers to introduce the special accounts from April 1.

The Ministry of Finance of Ukraine considers the introduction VAT bank accounts will allow to increase the state budget receipts by 4-5 billion of hryvnias.

According to the first vice-prime minister on finance of Ukraine Nikolay Azarov, VAT bank accounts introduction will allow to decrease the VAT rate this year.