Cabinet suggests additional 5-10% tax for 12 months on imports except essential goods
Ukraine's government suggests that additional tax on imports except for essential goods be introduced at a rate of 5-10% from January 1, 2015, for 12 months to stabilize Ukraine's balance of payments.
Related bills on the stabilization of Ukraine's balance of payments (No. 156) and on amendments to the Customs Code of Ukraine (No. 1563) were registered by the Cabinet of Ministers in parliament on Tuesday.
Additional 10% tax is proposed for foods imports (commodity groups 1-24 under the UKTVED code in Ukraine's commodity classification for foreign economic activity), other commodities (groups 25-97) are to be taxed at a rate of 5%. What is more, commodities that will be brought by individuals onto the territory of Ukraine are also subject to 10%.
The government suggests that such essential commodities as natural gas, power-generating coal, fuel for nuclear power plants, crude oil and fuel, banknotes and banking metals, humanitarian aid be exempt from the additional tax.
The government says in an explanatory note to the bill that the introduction of such temporary measure is in line with World Trade Organization regulations, as Ukraine's balance of payments has considerably worsened recently.
