The cancellation of the additional tax on imports would not change the parameters stipulated in the national budget for 2016 / Photo from UNIAN
Ukraine's Verkhovna Rada has passed a bill cancelling additional tax rates on imports from January 1, 2016, whereas the tax was originally planned to be in effect until February 25, 2016.
Respective bill No. 3533 on measures to facilitate foreign economic activity, which was prepared by the Ukrainian government, was supported by 268 MPs with the minimum required number of votes being 226.
Presenting the bill, Deputy Finance Minister Olena Makeieva said that the cancellation of the additional tax on imports would not change the parameters stipulated in the national budget for 2016.
The Economic Development and Trade Ministry earlier reported that the additional tax on imports, which was introduced in February 2015 to improve the country's balance of payments, had performed its mission along with an increase in the gold and forex reserves. Its total economic effect due to a reduction in imports is estimated at $1 billion.
UNIAN's memo. In late February 2015, the Ukrainian government introduced temporary measures in the form of import tax at a rate of 5% and 10% to stabilize the country's balance of payments.
The tax is not applicable to critical imports, medical supplies, energy resources, particularly natural gas, and other goods essential for the Ukrainian economy and public needs.
The World Trade Organization (WTO) member states urged Ukraine to cancel the tax no later than at the end of 2015.
At the same time, a vast majority of WTO members acknowledged that the measures introduced by Ukraine were related to a difficult situation with the balance of payments and were in full compliance with the provisions of the WTO agreements, with Russia being the only WTO member that had not joined the majority.