Anatoly Kinakh first vice-Premier of Ukraine reckons that optimal rate of value-added tax must be 10%. He stated it in the press conference and added that the current tax rate destroyed financial system of state and enterprises.

According to his words, the reduction of the rate was planned on January 1, 2005 but failed. There are lots of violations in the field of compensation of VAT for exporters. The last revision of General Office of Public Prosecution of Ukraine found lots of abuses concerning the debts of VAT compensation.    

Kinakh stated that the substitution of VAT by turnover tax must be fulfilled gradually during the next two or three years.

We remind that forst vice-Premier of Ukraine thinks that it is unreal to abolish VAT in the nearest future.  

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