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July 2 2002, 09:34 Interfax-Ukraine

Preferential imports of diesel to Ukraine are proposed by the Parliament's Agrarian Committee from July1st through December 1st

Agrarian Committee of Verkhovna Rada, Ukrainian Parliament, proposed to exempt diesel importers from VAT, import duty and an excise tax during the period between July 1 and December 1 in order to improve a supply of Ukrainian farmers with fuel.

The draft law was registered in the Parliament on June 27, 2002.

In particular, representatives of the Parliament's Agrarian Committee suggested amending the law of Ukraine "On temporary taxation procedure for production and sales of crude oil and some lubricants".

As earlier reported, the Parliament cancelled seasonal tax benefits regarding payments of VAT and other taxes by importers of diesel fuel in Ukraine in July 2001. The law of Ukraine "On stimulation of agricultural development in 2001-2004" has envisaged these tax breaks.

Since the January 1st of 2001, diesel importers had to pay an excise tax of EURO30 per MT, an import duty of EURO1.5 per MT, VAT and an innovation tax.

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