Former Finance Minister, head of the "Reforms and Order" party Viktor Pynzenyk believes that after the introduction of VAT accounts, which is planned by the draft law "On the State Budget of Ukraine for 2007," a rise in prices for a number of commodity items is possible, reports "LIHABiznesInform". \n \n"Everyone knows that VAT is a tax with which business credits the budget. But everyone forgets about another property of VAT - it also credits business. Bread is sold in a store every day. Is there VAT there? Where does it go? It goes to the budget on the 31st or the 1st. Before that, these funds are in the business's circulation, and it will use them. What are they going to do? Pull the funds out of circulation. These are multi-billion sums: 5-6 billion UAH, and maybe more. And what must business replace this with? Credits. Only if VAT was an interest-free resource, then credit must be paid for. This will increase demand, interest rates will rise. Which, in turn, will lead to higher prices for products," noted the former minister. In his opinion, this is precisely why society will not accept the very idea of introducing VAT accounts. \n \nRecall that earlier representatives of Viktor Yanukovych's government stated that the introduction of VAT accounts would allow avoiding schemes with VAT reimbursement to exporting enterprises both by the state and by producers of export-oriented products. \n \n