Companies@UA: База компаний Украины

Kyiv, August 5 (Interfax-Ukraine) – VAT in Ukraine bolsters the raw-material-intensive economy and hinders the development of high-tech production, according to famous banker Serhiy Tihipko, who has declared his intent to run for president.

"If we leave VAT in the present form, it would mean retaining the problems of our economy. In due time, VAT was imposed in France as a restricting tax to fight over-production. In Ukraine VAT stimulates exports of raw materials and semi-finished products," Tihipko's press service reported, citing him.

He said that in the present system production of high-tech engineering products after paying VAT for each element becomes too expensive and unprofitable, while VAT is reimbursed for exports of iron ore concentrate, for example.

"Thus, with VAT, we have been constantly bolstering the sale of raw materials instead of the organization of the production of goods," he said.