July 24 2002, 14:12 Interfax-Ukraine

Ukrainian tax authorities will develop schedules of export VAT refund in two-day term

Prime Minister Anatoliy Kinakh has charged State Tax Administration to develop schedules of VAT refund to grain exporters in two-day term. This was told yesterday by Vice-Prime-Minister for agriculture Leonid Kozachenko at a press-conference. He pointed out that urgency of the schedule development was called on by the fact that uncertainty with VAT refund affected negatively grain prices. He reminded of declared by grain traders in early June intend to lower grain purchasing prices by 20 percent if the issue is not solved. Kozachenko also informed that State Tax Administration had promised to promote active exports of grain. He said that the tax authority had already removed vagueness in wording of tax regulations concerning deliveries of goods on CPT and FOB basis, having finally admitted these to be export transactions.

Agrarian Minister Sergey Ryzhouk, in his turn, noted that if the issue of VAT refund was resolved, the grain market would ultimately liven up. "The agreed and controlled by government refund schedules will impart confidence to grain traders that VAT will be repaid and they'll have no reasons to drop their prices," the Minister said.