Business accepts idea of possible postponement of VAT and profit tax rates reduction, says tax ministry

12:14, 31.10.2013 1 min read

Ukrainian business accepts the idea of postponing the reduction of profit tax and value added tax (VAT) foreseen in the Tax Code, Income and Tax Minister of Ukraine Oleksandr Klymenko said at a press conference in Kyiv on Wednesday, October 30.

He said that the idea could be reflected in the national budget for 2014.

"I think that in the near term we will finish all the consultations and take a decision, which will be reflected in the law on the national budget for 2014. I'm sure that today there are grounds for the postponement of the reduction of the profit tax and VAT and business accepts the issue today," the minister said.

The minister said that the government had rejected the idea of introducing a tax on turnover.

"The issue is being discussed, by the government will not introduce the tax now," he said.

According to the Tax Code of Ukraine, from January 1, 2014 VAT is to be reduced from 20% to 17% and profit tax for companies from 19% to 16%.