People’s deputies have proposed to reduce the basic rate of value added tax (VAT) from 20% to 16% with the aim of optimizing payment of this tax, as well as abolish the third group of single tax payers.
Corresponding bill No. 8089 has been registered in the Verkhovna Rada, according to the parliamentary website. Its initiators were people’s deputies Andriy Shynkovych and Hennadiy Chekita (the Bloc of Petro Poroshenko faction).
“The current basic VAT rate of 20%, even if the system of electronic VAT administration is gradually implemented, makes it possible to apply a variety of schemes for VAT evasion in the form of the so called “twists” and fictitious business entities, since their services cost 10-12% and the VAT rate of 20% forces them to use their services to optimize tax burden and legalize the shadow turnover of goods and services,” the authors of the bill explained in an explanatory note to the document.
According to the explanatory note, the draft law proposes to abolish the third group of single tax payers.
