September 18 2002, 21:09 UkrInform

Prime Minister of Ukraine about complex approach to VAT refund issue

The issue of VAT refund should not be looked at as a separate problem in tax, finance and economic system of the state. This issue is immediately connected with the actual state of economy in the country, activities of all subjects of national economy, the whole system of social and tax privileges and other regulators, Prime Minister of Ukraine told Wednesday to a meeting of a special commission for export VAT refund budget indebtedness settlement issues.

Prime Minister again noted that value added tax in its today's shape in Ukraine was destructive for national economy, was negatively affecting budget indicators and activities of Ukrainian exporting businesses. Besides, he said, the yet unsolved problem of VAT refund was dramatically affecting relations of Ukraine with world community, first of all with European Union, International Monetary Fund and World Bank. But this issue is most pressing for ourselves and we must fully appreciate its importance, he said.

He reminded that government had submitted to Parliament a draft law about some amendments to the value added tax system. He said that government would have to discuss with Parliament the forthcoming taking of a number of unpopular decisions concerning putting in order VAT exemption system, intransigent struggle with evasions from VAT payment and persistent attempts of some economic subjects to acquire a right for refund of negative VAT balance. This involves sums to order of at least hundreds millions of hryvnias, Prime Minister said.

Besides, he said, government had taken a resolution which banned usage of bills of exchange in VAT payment with clearing goods, arriving in the customs territory of Ukraine. The resolution takes effect since October 1. According to the document, bills will be allowed for use till January 1 only in clearing crude oil.