Ukraine can cancel VAT on products for babies

  • 6/25/14 4:24 PM

 



The Cabinet  of Ministers intends to abolish VAT on baby food, diapers, clothes for babies.

The text of the relevant draft resolution of the Cabinet of Ministers on "Some issues of subparagraph 197.1.1 of paragraph 197.1 of Article 197 of the Tax Code of Ukraine" was published by the Ministry of Economic Development and Trade.

"The purpose of the adoption of the resolution is to reduce the price burden on consumers when purchasing baby food and goods for children through identification of the list of goods whose supply operations under subparagraph 197.1.1 of paragraph 197.1 of Article 197 of the Tax Code, exempt from value added tax "- said in an explanatorynote.

The draft regulation provides the abolition of VAT on baby food, baby diapers and nappies and baby clothes made ​​of natural fibers.

The authors of the project, reducing the fiscal burden on the production of baby food and goods for children baby, will improve the demographic situation in Ukraine as a result of cheaper goods for children.

As reported, according to UNO projections, while preserving the reduction in population by 2030, Ukraine's population could fall to 39 million people.

According to the Institute of Demography and Social Studies population of Ukraine in 20 years fell by 6.5 million people, one of the reasons is the difficult economic situation in the country and the low standard of living.

 

Source: UNIAN

 

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