The Bill (Reg. No.1237) proposes to extend the list of operations not subject to taxation, by adding utility services provided to natural persons, budget institutions, unregistered payers of this tax, together with Housing and Utility Services offices, and other similar establishments and organisations collecting monies from buyers for the purpose of their subsequent remittance to the sellers of such services.
Committee members noted that this proposal is in conflict with the generally accepted Taxation principles.
S. Teriokhyn, Committee Chairman, said that ‘the passing of this Bill will most probably not lead to a reduction in the cost of utility services.´ He said that this decision will affect the cost of services and reduce the income tax levying base and the amount of money added to the Budget.
The Committee noted that the practice of using preferential taxation regimes shows an inefficiency in granting tax benefits, since they do not create favourable conditions for stabilising the financial stance of companies, nor a reduction in the prices of products.