MPs intend to ban restrictions on circulation of govt bonds – bill

KYIV. May 2 (Interfax-Ukraine) – MPs propose to ban restrictions on the circulation of government domestic loan bonds on the market in finalized bill No. 7311-d with amendments to the Tax Code, according to the text of the bill published on the parliamentary website.

"The establishment of any restrictions on the turnover of government bonds shall be prohibited, and early redemption of government bonds shall be allowed," the text of the document states.

In addition, in the finalized bill, MPs propose to return to the issuance of VAT bonds for a period of three years. Thus, companies will be able to receive a budgetary VAT refund for January 2022 upon submission of the relevant documents by May 1, 2022.

"The Ministry of Finance offered businesses two options: either wait until the money appears, or take a return in depreciation bonds at 10% per annum, with a nominal value of UAH 1,000," Yaroslav Zhelezniak, deputy head of the committee on finance, taxation and customs policy, commented on the new version of the bill.

As previously announced, the bill contains a proposal to increase the rate of a military tax from current 1.5% to 3%, however, the targeted use of part of the proceeds of such funds is determined – exclusively for the needs of the Armed Forces of Ukraine.

The bill also proposes to establish that taxpayers in temporarily occupied territories or in areas of active hostilities are exempted from the obligation to file reports for three months after the de-occupation of territories or the end of hostilities. MPs propose to assign the obligation to determine the list of such territories to the government.

The bill proposes to return to the taxation of imports, including the import of cars with foreign registration, except for all-wheel drive cars with a pickup body produced before 2017.