By KYIV. Dec 20 (Interfax-Ukraine) – The simplified taxation system of 2%, introduced at the beginning of the war, will be canceled until mid-2023, due to its operation, the state budget saw a shortage of up to UAH 10 billion, head of the parliamentary committee on finance, taxation and customs policy Danylo Hetmantsev said.
"We will cancel it (a 2% taxation system) until mid-2023. It played its role, which was to bring the economy out of shock in the spring and summer. The same applies to fuel taxes," he said in an interview with Ukraine’s Forbes, which was published on Monday.
According to the head of the committee, of other war benefits, the greatest losses to the budget were caused by preferential customs clearance of cars – more than UAH 13 billion, the abolition of excise duty on fuel – UAH 50 billion a year, exemption from duties and import VAT – more than UAH 40 billion.
At the same time, the official said that the government does not plan to cancel other benefits for small businesses until the end of martial law.
The head of the committee also said that in January the parliament plans to adopt a law that, for the period of martial law, exempts equipment and components used for domestic production from import duties and VAT.
"We are also planning benefits for the fourth group of the simplified system for farmers. In fact, we are exempting everything that cannot be used in economic activities. For example, there is a request from mobile operators for exempting from royalty of frequencies for towers located in the de-occupied territories, as well as for the use of water energy generating companies," he said.
