The State Tax Administration of Ukraine (STAU) initiates reduction of VAT from current 20% to 17-18%, Oleksandr Kireyev, a Chairman of the STAU told.
According to him, such initiations may be accomplished by new Tax Code which is under construction now.
Among other tax innovations Kireyev outlined profits tax reduction by 5% (from 25% to 20%) and implementation of the differentiated scale of the taxation of the natural persons’ incomes.
“To pass a new tax code will take a year and a half to two years and 300 votes of the Verkhovna Rada,” said Kireyev.
As a reminder, in September of 2005, Ukraine’s First vice PM Anatoly Kinakh tolerated the possibility of VAT reduction by 2-4% (16-18%) in 2006. However, in March, 2005 Kinakh stressed that VAT reduction would be impossible for next two years.
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