The FINANCIAL — Vice Prime Minister Borys Kolesnykov says the Verkhovna Rada of Ukraine should endorse the Tax Code ahead of the endorsement of the 2011 national budget.
He gave his position in an interview with the Dzerkalo Tyzhnia newspaper.
"It is important to endorse the Tax Code no later that the final wording of the 2011 national budget, as the national budget should be prepared on the ground of the code. I think optimal terms would be 1 November through 15 December, when the national budget is endorsed at the last reading," he said.
He said the projected rates of major taxes fixed in the Tax Code are known already and this gives opportunities to work on the national budget for 2011.
"What is unknown in it? The single tax! Small business! They don't have large influence on the revenue part of the budget. If we take 1 million of businesses paying UAH 200 a month this will be a drop in the sea in comparison with billions in the national budget. The rest is absolutely clear: the profit tax, value added tax," said Kolesnykov.
In his opinion, the introduction of a mechanism for automatic reimbursement of VAT will be possible when conditions are in place making impossible the creation of fictitious credits on VAT.
"It can be introduced only when it is impossible to create a fictitious credit on VAT. This mechanism, if introduced, will only boost the revenues of the budget and the businesses won't lose circulating assets for a single day," he said.
He did not rule out that VAT reimbursement for a number of operations, including exports of grain, will be canceled.
"We believe the reimbursement of VAT with export of grain will not exist, as well as with the exports of timber. Do not export timber, but furniture, do not export grain, but meat. Add value first. What does VAT consist of with the export of grain? Petroleum, oil, lubricants? Yes, these expenses exist, but they are minor in the scope of this profitable business," he said.
In his opinion, the cancellation of VAT is not expedient, as the value added tax exists in most of European countries.
As Ukrainian News earlier reported, the Verkhovna Rada of Ukraine on 17 June 2010 endorsed draft Tax Code (draft law No.6509) at the first reading.
On July 8, the parliament decided to bring the draft code for the public discussions.
The Verkhovna Rada instructed the Cabinet of Ministers to study the results of the public discussions and submit the results to the parliament until September 5.
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