Ukraine’s major export industries, which provide foreign exchange revenues, are unable to restore production due to lack of funds.
The industry could not resume production due to lack of funds arising from the suspension of VAT refunds. This is stated in a letter from the European Business Association to Finance Minister Sergei Marchenko.
The EBA recalls that the export of products from the mining and metallurgical complex and the agricultural sector is the main source of foreign exchange revenues for the Ukrainian budget and an important factor in maintaining the balance of state payments. .
It was noted that operating enterprises of mining and metallurgical complexes are trying to ensure pre-war levels of production and exports in order to save jobs, pay salaries and pay taxes (more than 80 billion hryvnias in 2021 ).
MMC businesses also provide material and financial resources to the Armed Forces of Ukraine, contribute to the evacuation of the population, send humanitarian aid, transportation, medicines to the population in all regions.
“Currently, untimely VAT refunds block up to 20% of the working capital of MMC’s businesses, at the same time, suppliers of raw materials / materials / services usually require full “advance payment for goods / services, taking into account martial law. businesses to reduce purchases, which means that it makes it impossible to increase / maintain the current volume of production and exports,” said the experts. in the EBA.
A similar situation has developed in the agricultural sector. Lack of working capital will lead to lack of grain storage capacities due to the inability of exporting companies to continue buying and exporting grain, as well as problems with the sowing campaign. .
The business warns that if the problem is not solved in the near future, businesses will be forced to reduce production, which will lead to reductions in staff, tax payments and foreign exchange earnings.
“We strongly request you to facilitate the continuation of tax invoice form J / F1201012, which is valid until March 1, 2022, as well as to immediately resume conducting desk audits of tax returns on VAT to further ensure budgetary VAT refunds for previous pre-war periods, “the letter said. to the Minister of Finance.
It should be noted that Azovstal and Ilyich Iron and Steel Works, which ceased their work, cost up to 40% of Ukrainian metallurgy capacities. Metinvest aims to employ the majority of metalurgists and repairmen evacuated to safe regions.
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Source: korrespondent
