The Government allocates UAH 430 million for compensation of credit rates for agricultural enterprises, energy and engineering, introduces a system of electronic tax administration of VAT and is to submit to the Parliament a bill on radical reforming of a single social fee, said Ukrainian Prime Minister Arseniy Yatsenyuk at a press conference on Thursday, July 31.

Arsenit Yatsenyuk noted that the Government’s amendments to the State budget provide UAH 430 million USD for compensation of interest rates on loans taken by Ukrainian agrarians, the energy sector and machinery construction, including "Ukrzaliznytsya": "By the end of this year, it will give an opportunity to get extra UAH 10 billion of loans to the Ukrainian economy and spend them on the village, engineering and energy."

The Prime Minister also announced that at the next session of the Parliament the Government will submit a bill on radical reforming of the single social fee aimed at reducing rates and broadening the tax base.

Arseniy Yatsenyuk noted that Parliament has backed a proposed by the Government new system of VAT electronic administration: "The most corrupted tax in the country is a value-added tax. Today we’ve put an end to VAT laundering, to a VAT UAH 20 billion-profit per year, as well as unrecovered VAT."

This system, according to the PM, shall enter into force from January 1, 2015: "It means only one thing: the one who is an honest taxpayer shall pay the value added tax and get a refund without having to wait for months and sometimes years; and that the one who wants to make a fortune out of VAT, shall not even get to a banking institution to put a payment order and illegally steal VAT from the State budget."

"In these extraordinary circumstances we managed to convince MPs that we should close a “loophole” for VAT corruption," he emphasized.

The Prime Minister addressed to international partners: "All we promise, we are performing. The Government of Ukraine announced to the whole world that we would balance the budget, we would fight against shadow schemes, spend only what we actually earn, and thus stimulate the Ukrainian economy.

"We will continue to work on a package of reforms and to fight for the country. I’ve told you that I will not give up without a fight. The fight has taken place. We’ve won it," the PM said.