Draft Law of Ukraine

"On Amendment of the Law of Ukraine "On the State Budget of Ukraine for 2004"

The draft suggests deleting Article 12 of the Law of Ukraine "On the State Budget of Ukraine for 2004", according to which in 2004 the state shall repay outstanding debts on value added tax through their registration as domestic state loan bonds maturing in 5 years.

Respective amendments are conditioned by the fact that the negative balance of value added tax is to be compensated from the budget directly to accounts of taxpayers. Delaying such compensation for five years may leave taxpayers without turnover means, which soon will lead to their bankruptcy.

At the same time, the authors of the draft did not suggest other ways to compensate outstanding debts on value added tax. Therefore, the draft, if approved, may result in problems related to compensation of outstanding debts on value added tax still remaining unsolved for an indefinite period of time.