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"Ukraine
undertook obligations to WTO to adjust the taxation; but,
the introduction of 20% VAT will lead to losses for
agricultural producers. According to estimations of Tax
Administration, Ministry of Finance and or Ministry, this
sum will amount to UAH 1.4 billion for agricultural
producers", Yuri Luzan said.
He
says that if the Parliament adopts this draft law, it will
enter into effect on the first of April. In particular,
the draft law provides the changes in the mechanism of
donation allocation for livestock products (milk and meat)
and VAT changes.
"In
this case there is a plan to reimburse the losses of
agricultural producers by means of donations from the
general foundation of state budget; however, the producers
will have no operational assets in the period when they
are waiting for reimbursement. The independent experts
think that a lot of "crooked" schemes will be
created while using the donation to meat and milk
producers, for example, untimely payments for the
population. I.e., many processing enterprises will use VAT
for the own purpose", Yuri Luzan said.
Source
: Agricultural Marketing
Project - Kiev,Ukraine, dated 05/02/2008
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