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Introduction of special VAT accounts may harm operations of farming industry: Grain Association
The decision about introduction of special bank accounts for payment of value added tax is rather premature and it may have negative influence on the work agricultural industry's enterprises if these measures are not supported by a careful analysis, the Head of Grain Association of Ukraine (UZA) Volodymyr Klimenko has said.
On March 23 the Government and the National Bank of Ukraine passed a resolution about payment of value added tax since April 1 exclusively through special banking accounts, opened for the purpose.
Klimenko thinks that the issue of VAT bank accounts needs a substantial preparatory work. He agreed with the opinion of experts that financial state of the companies would decline following the introduction of the measure, due to freezing-own of 20 percent of their current assets.
At the same time the Head of UZA is sure that if the government manages to create an efficient automatic system of VAT refund to exporters, this will have positive effect on their work.