OREANDA-NEWS. August 17, 2010. President of Ukraine Viktor Yanukovych met with Chairman of the State Tax Administration of Ukraine Oleksandr Papaika. At the meeting they have discussed execution of the 2010 State Budget, VAT refunds, public discussion of the draft Tax Code, which will be brought in to the Parliament this fall, etc.

Oleksandr Papaika said that despite the difficult economic situation in the country, the growth of incomes to the budget is recorded. “Since the beginning of the year we have up to 46% growth for some taxes compared to the last year," he said.

The State Tax Administration Chairman reported that in August the growth is expected to nearly double compared to 2009. According to him, budget filling is achieved not through increased taxation or pressure, but through the analysis of financial affair of payers and active cooperation with industrial and financial groups.

The President instructed to intensify the fight against illegal reimbursement of VAT and, especially, with the new shady schemes that appear on the market. "We want public funds used for their intended purpose and not a single dime go to speculators," he said.

Oleksandr Papaika informed Viktor Yanukovych that the STA and the State Customs Service are fighting the so-called pseudo-export, which involves exporting goods declaring higher prices in order to get more VAT reimbursed. "I think the steps we take, will give us the opportunity to bring the order," he said.

Speaking about public discussion of the draft Tax Code, the STA Chairman said that during their meetings with businessmen they have heard different opinions. "Most think that the Tax Code should nevertheless be adopted, although with amendments and comments,” Oleksandr Papaika said.

“Different proposals are voiced. We must find an ethical middle, the compromise and make a decision," the President said in response adding that he does not rule out the possibility that the Tax Code will need further improvement.

The President instructed to inform him on the results of public discussion, particularly on the proposals of removing or adding something to the draft Tax Code.