UKRAINE: UKRAINE-IMF VAT DISPUTE AFFECTING BUSINESS.(International Monetary Fund wants Ukraine to refund some value added tax revenues to exporters)(Brief Article)

IPR Strategic Business Information Database, February, 2002

Ukraine and the International Monetary Fund (IMF) failed to reach agreement on the key issue of valued-added tax (VAT) during the Kyiv visit of an IMF monitoring team. The IMF wants the government to pay more than 6 billion hryvnias ($1.1 billion) of VAT tax refunds to exporters. The government says it is short of cash to repay the funds after parliament wrote off companies' debt to the state budget. Exporters say the delays have become unacceptable and are

impacting business successes, Reuters reported. The IMF says the problems mean other companies balk at paying the tax up front, aware the unresolved issue could deprive them of a major slice of their revenues. The VAT dispute has stalled discussions on releasing funds from a $2.6 billion IMF loan program. So...

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