Ukraine’s Parliament has proposed to reduce the rate of value of the added-tax (VAT) from 20% to 15% over five years.
The corresponding bill No.2757-1 was registered on the website of the Verkhovna Rada.
“Reducing the VAT will increase sales volumes by lowering prices, which will accelerate the circulation of financial resources, which, in its turn, is extremely important for the effective functioning of the financial system,” the explanatory note to the bill reads.
The gradual reduction of the tax rate to 15% over five years minimizes budget losses in the short term, stimulate the flow of financial resources, as well as provides goods and services for consumers at lower prices.
Thus, from January 1, 2021, the tax rate will be set at 19%, and from January 1, 2025 at 15%.
To the author of the bill, a sharp decrease in the value added tax rate from 20% to 17% already in 2021 will result in non-receipt of about UAH 79 billion to the state budget.
As The Journalist reported, Ukraine’s metallurgical industry increased by 30%.