The Cabinet of Ministers of Ukraine is considering the possibility of abolishing the value added tax and the consequences of this. This was stated by Prime Minister Yulia Tymoshenko, speaking on Friday at the forum "Business and Government - Partners," reports "Ukrainian News." \n \nAccording to Tymoshenko, from the very beginning of her work as Prime Minister, she asked the State Tax Administration to calculate budget revenues from taxpayers on the condition that only personal income tax, tax on sales of products, as well as rent and excise duties would be paid, and VAT and payroll tax would not be paid. \n \nAccording to Tymoshenko, the calculations indicate the advantage of such a taxation system - budget revenues from taxpayers in this case exceed the existing volumes of tax revenues. \n \nAs reported, First Vice Prime Minister Anatoliy Kinakh allows for a reduction in the value added tax rate in 2005. According to him, former President Leonid Kuchma instructed the Cabinet to provide for a reduction of the VAT rate from 20 to 15% starting January 1, 2005. However, he noted that everyone forgot about this, and the 2005 budget was formed taking into account the existing VAT rate of 20%. \n \nIn October 2004, Viktor Yanukovych, while serving as Prime Minister, announced the Cabinet's intention to propose to the Verkhovna Rada a reduction of VAT from 20 to 17%. \n \nIn July 2004, the State Tax Administration announced its intention to prepare by the end of August 2004 a draft law providing for a reduction of the general VAT rate from 20% to 15%. \n \nIn June 2004, Kuchma stated the need to develop a new law on VAT. In April 2004, Kuchma proposed to the Rada a reduction of the VAT rate from 20% to 15% after the introduction of special accounts for value added tax payers (VAT accounts). In July, the Rada refused to introduce VAT accounts.