Vladimir Delba: VAT is applied in those countries where it is understood that own economy should develop

17.06.2020 18:57
Vladimir Delba: VAT is applied in those countries where it is understood that own economy should develop
Vice Prime Minister, Minister of Finance of Abkhazia gave a press conference.

Sukhum. June 17. Apsnypress. At a press conference, Deputy Prime Minister and Minister of Finance Vladimir Delba commented on the effectiveness of the current legislation on value added tax.

Minister recalled plans for VAT reform: “Recently there was held a meeting with Prime Minister, it was attended by representatives of our country's business, which are VAT payers. They discussed implementation of the VAT law, application of its individual norms, impact on the country's economy, on the state budget. VAT - as a measure of support for a national producer, the procedure for applying benefits. Of course, the law itself undoubtedly raises a lot of questions. But one thing is for sure that it is necessary to amend this law. Value added tax itself, of course, is a very stable and sustainable source of tax revenues to the budget system of the republic, it is a leader among all other taxes, its level reaches 30%. ”

Minister explained: “In this regard, I would like the amendments to the law on VAT, first of all, to create conditions for predictability of the tax burden on business, fair taxation, equal taxation of objects, changes in the list of goods that are not taxable. Measures taken by order of President will be able to support entrepreneurs. But they also include measures such as balanced monetary and fiscal policies. At the meeting there were proposals from entrepreneurs to amend the current law, for example, in terms of increasing the deadlines for deferring payment of VAT on objects of taxation, taking into account different rates. But, frankly, my subjective opinion is that splitting up rates will not give any economic effect, but it will increase management expenses in the organization. ”

Delba gave a financial assessment of value added tax: “VAT on goods that are imported into the republic is the leader. For the entire duration of the law on VAT, since 2016, its payment to the budget amounted to 3.3 billion rubles - this is a fairly large amount. And the whole amount of VAT paid, including domestic - more than 6 billion rubles. VAT has many advantages in relation to other taxes, here the object of taxation is income from the final consumer. Value Added Tax is an import tax. It is used in those countries where there is an understanding that their own economy should develop. And the tax levied at the border bears exactly this burden. ”

Minister emphasized that VAT cannot be abolished: “We can consider the possibility of lowering the rate, which will not have a very positive effect on the budget system, this is obvious. With regard to the abolition of import VAT - I think either it is necessary to abolish everything, both import and domestic, or apply everything, but limit it by the timing of payment. In the form in which it is now applied, it is international practice, this is the meaning of VAT! ”.

At the same time, Delba noted: “Another thing that this was unexpected in 2016. I believe that it was possible to give time for the preparatory phase, so that the business would orient itself, predict its financial risks, and consider economic feasibility. ”

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