News June 2008

During the working visit to Zaporozhye region, the Prime Minister Yulia Tymoshenko met with officials of local government, scientists, cultural and educational figures, businessmen. Taking into consideration the increased competition from foreign manufacturers under conditions of Ukraine entry into World Trade Organization, the Chairman of the Board of CJSC "ZAZ" Mykola Yevdokymenko applied to the Government of Ukraine and to the Secretariat of the President of Ukraine with suggestions, which in case of accepting, will enable to approximate the economic conditions of activities for national companies to those of foreign manufacturers ( mainly, to European ones), and will enable to compete with them on equal terms. In the judgment of Mykola Yevdokymenko, the following activities are necessary for development on automotive industry and its suppliers and vendors, and for Ukrainian economy, as a whole: - to support the decision of Supreme Rada on introduction of new import duty rates for vehicles with engine displacement up to 2.2 l not earlier than since the beginning of new fiscal year - since January 01, 2009; - to renew settlements by bills in case of importing the goods; - not to charge the income taxes on the investments, directed to production development; - to allow the import of high-technology equipment, which is not produced in Ukraine, w/o payment of import duty; - to exempt from VAT the investments to authorized capital in case of establishing the joint ventures and companies with limited liabilities; - to reduce the tax burden on remuneration fund for the employers. The Chairman of the Board of CJSC "ZAZ" Mykola Yevdokymenko, on behalf of car manufacturers, expressed the gratitude to the Government for regard shown to automotive branch and for understanding the processes, taking place in national economy.