"The system of automatic VAT refunds has been launched. We have proposed the system, but it has not yet started working properly. I hope by the end of the year it starts working at full capacity, and we will really create a useful mechanism, which causes no complaints of the taxpayers," President Viktor Yanukovych said in his speech at a public presentation of the concept "Investment reform", according to the presidential press office. 

Currently, the President said, businessmen have many complaints about the work of tax and customs authorities. Beside the problem of timely VAT refunds, there are problems with reforming simplified taxation system, adjusting inspections of businesses, delays in processing goods at the customs, illegal exemption from customs due to the officials’ abuses, inadequate smuggling counteraction. 

"In order to eliminate all these problems I have already instructed the Government to immediately prepare and approve a program of reform in the State Customs Service and the State Tax Service," he said. 

"I hope we will finalize the question soon and do another good deed for our country," Viktor Yanukovych said, addressing the Prime Minister. According to the President, it is most important to bring the economy out of shadows, improve fiscal policy and overcome tax and customs service internal corruption schemes. 

The President expressed conviction that developing proper legislative changes is essential for the implementation of reforms. The result should be radical increase of supervisory bodies’ responsibility for their actions. 

As for the adaptation of business to working under the new tax legislation, he said, the Tax Code provides for a six-month transitional period, during which the penalty for violations is set to the nominal 1 Hryvnia. 

"Solving problems of business in the area of customs control will be facilitated by the adoption of a new Customs Code, which must be brought in accordance with European and global standards. The relevant bill is currently being worked out in the Verkhovna Rada of Ukraine," he said.


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