People's Deputy of Ukraine, head of the NPU faction in the Rada Ihor Yeremeyev forecasts UAH 6 billion in revenues to the State Budget of Ukraine annually as a result of the Cabinet of Ministers of Ukraine introducing 20% VAT on oil imports into Ukraine. Yeremeyev said this at a press conference on Thursday, reports a proUA correspondent.
Yeremeyev called the government's decision "timely" and one that made it possible to "discard the use of any enterprises with foreign investments that have tax privileges." According to Yeremeyev, by its resolution the government did not raise the tax rate from 0 to 20%, but excluded crude oil from the intergovernmental agreement under which Russian oil is supplied to Ukraine for domestic needs.
Also, according to Yeremeyev, on Wednesday the government, as part of the cancellation of 29 resolutions of the previous Cabinet and the privileges for the said enterprises, including those located in the zones affected by the Chornobyl Nuclear Power Plant disaster.
Yeremeyev believes that the government's decision will bring the oil business out of the shadows, help fill the budget and suspend the use of re-export schemes. According to Yeremeyev, by banning oil re-export, the government had the opportunity to think through regulatory regulation of schemes for illegal VAT reimbursement.
Yeremeyev: retail oil prices will not rise
People's Deputy of Ukraine, leader of the NPU faction in the Rada Ihor Yeremeyev forecasts a slight increase in wholesale and small-wholesale prices, and also forecasts that the current level of retail prices for petroleum products will be maintained as a result of the introduction of a 20% VAT rate on oil imports into the territory of Ukraine. Yeremeyev said this at a press conference on Thursday, reports a proUA correspondent.
"In March, prices for wholesale and small wholesale may rise, but retail prices, which concern the consumer most, should not rise," said Yeremeyev. He also noted that prices will be kept down by increasing state budget revenues from VAT payments on imports.
Yeremeyev also believes that in order to keep petroleum product prices low, the government should stock up on them during the winter months, when their consumption is lowest and therefore the products remain unclaimed but already purchased at a low price. In particular, Yeremeyev forecasts that such expenditures will be included in the 2005 State Budget when the government introduces amendments to it, and the practice of stocking up on fuel in winter will be introduced already before the next sowing campaign.