The Committee on Taxation and Customs Policy recommends that the Parliament forwards the Bill on Luxury Tax for further Drafting

17 April 2009, 15:30

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The Bill (Reg. No.3405) "presupposes taxation of goods, works and services considered as luxury, and defines the areas to allocate the funds obtained from its payment". Pursuant to the Bill, luxury goods cover any goods, works or services, the cost of which exceeds an average cost of similar goods, works of services in Ukraine. 

 

Serhiy Teriokhin, Committee Chairman, stated that the Bill "failed to define an object of taxation and the concept of luxury clearly. Moreover, it fails to define the criterion for treatment of goods as luxury ones".

 

According to Serhiy Teriokhin, "misunderstandings may occur while applying the regulations, pursuant to which the luxury tax is paid at one time directly by payment for the goods, works or services, as in such cases all the sellers should have the information concerning cost of every good at a particular date".

 

The People´s Deputies believe that the Bill should envisage relevant amendments to the Law "On the System of Taxation".