Photo from UNIAN
Ukrainian Economic Development and Trade Minister Aivaras Abromavicius says that the Ukrainian Finance Ministry is expected to announce in coming weeks that UAH 47 billion accumulated in outstanding debts owed to businesses due to delayed value added tax (VAT) refunds and overpaid corporate profit tax will be restructured.
"There is an outstanding debt of UAH 47 billion to businesses: overpayment of corporate profit tax and incomplete payment of VAT refunds. In the coming weeks it is necessary to announce the restructuring and the schedule when these taxes could be paid out," the minister said at a business forum in Kyiv.
Abromavicius also said that tax reform should take into account low rates that are currently in place for all major types of tax, except for single social security tax.
"In general, we have low [rates] for most of taxes, except for single social security tax. Therefore, the focus must be placed on tax administration," Abromavicius said.
As UNIAN reported earlier, State Fiscal Service head Roman Nasirov said he expected that the Finance Ministry would issue bonds worth up to UAH 20 billion in November to repay delayed VAT refunds to businesses.
The state owes UAH 20 billion in VAT refunds to businesses, while overpaid corporate tax for previous periods totals about UAH 28 billion.
The amount of VAT reimbursements to companies in September 2015 increased by 1.7 times as compared with August, to UAH 7.613 billion.