Ukrainian President Leonid Kuchma submitted a bill to parliament lowering the VAT rate from 20% to 15%, following the introduction of ad hoc VAT accounts.

VAT accounts are to be used exclusively for VAT and budgetary settlements and also by customs bodies for customs clearance of goods.

The bill also alters the methods for calculating tax obligations and tax credits and sets a mechanism for automatic reimbursement of VAT.

(NewsBase 19.iv.04)