On the eve of his “promotion” Khoroshkovsky confirms to <i>The Day</i> government’s plans to bring back VAT for imported gas
But only on condition that the price of Russian gas for Ukraine is lowered“It will only be done after the price of gas is changed,” remarked Khoroshkovsky to The Day. Meanwhile, a source, which is close to government, informed The Day that the resolution on VAT is in its final stages of preparation: it is being reviewed by the Cabinet of Ministers.
As a reminder, VAT on imported gas was cancelled on July 1, 2010. In October 2011, the president of Ukraine Viktor Yanukovych extended the zero VAT on imported gas for National Joint-Stock Company Naftohaz of Ukraine until 2013. This made it possible to buy gas at a lower price, but the state budget was losing some profit. The VAT on gas would amount to quite large funds. According to the State Statistics Service, last year Naftohaz of Ukraine imported 40.01 billion cubic meters of natural gas with the overall cost of 12.4 billion dollars. Therefore, state budget was able to earn an additional 2.5 billion dollars from VAT on natural gas.
Yurii KOROLCHUK, expert, the Instutite for Energy Research:
“The budget will definitely profit from this, since it is an automatic influx of income. But I am wondering where Naftohaz of Ukraine is going to get the money for paying VAT from. Nowadays the state gives funds to it to pay for the imported gas. And if the discount is considerable (more than 10 percent), which means that the price for gas will go down to 250 dollars, then both the budget and Naftohaz of Ukraine, which will not grow financial appetite for paying for the gas, will benefit. Considering that in 2012 Ukraine plans to buy 27 billion cubic meters of gas at an average price of 420 dollars (that will add up to 12 billion dollars), the VAT earned during the custom clearing of the gas is going to amount to almost 2.5 billion dollars.”
Volodymyr LANOVY, president, the Center of Market Reforms:
“I support the idea of bringing VAT on gas back. There should be no exceptions for importers (which is Naftohaz of Ukraine is in this case). Importers traditionally pay VAT. This is how a country’s dependence on imported goods is checked. And if the government is wise and provident, it will try to compensate VAT for exporters in order to promote domestic goods to external markets and gain new ones.”
Bohdan SOKOLOVSKY, former presidential authorized representative on energy security:
“Citizens will definitely be at a disadvantage if this happens. If any additional payment is present, it is the consumer that has to pay it in the end. On the other hand, state budget benefits from gaining extra profit. But a balanced effect from bringing back VAT is only possible if the price for Russian gas is lowered. As for today, there are no certain agreements on that yet. The Ukrainian party keeps to one consistent line, whereas Russia gives many promises it never fulfills.”
