News September 2008

Chairman of Supreme Rada of Ukraine Mr. Аrseniy Yazenyuk started his visit to Zaporozhye region with visit to Zaporozhye Automobile Building Plant. The Honorary Chairman of "UkrAVTO" Corporation, Mr. Tariel Vasadze and Chairman of Board of the CJSC "ZAZ", Mr. Nikolay Yevdokimenko acquainted the guest with work of the largest automobile plant of Ukraine. Principal concern was given to cooperative relations of the CJSC "ZAZ", which effort an opportunity to enable production potential of more than 1100 companies-suppliers. It was mentioned importance of the plant as employer and taxpayer. Ukrainian car makers called attention of the speaker to scope of measures, urged to provide legislatively equal conditions for domestic and foreign car makers subject to joining the WTO. Proposed measures are similar to measures valid in economically developed countries - members of the WTO. Amendments shall envisage running the veto on the bill # 2351-1 "On making changes to the Law of Ukraine "On Customs tariff of Ukraine", which shall be adopted in connection with Ukraine joining the WTO and envisages implementation of new rates of customs duties, beginning since the 1st of January, 2009. It is necessary to bring the base of profit taxation in Ukraine in correspondence with norms of EU, excluding expenses on innovation development of company, scientific-and-research and design works and expense on raising the level of employees' skills etc. For the purpose of developing the Ukrainian vehicle building it is necessary to decrease taxation obligations of companies, by means of application of subsidies, permitted by GАТТ/WTО: - to exempt from taxation of profit, being reinvested into production - to exempt from paying customs duty on equipment, its components and materials, being produced out of Ukraine, and used for technological reequipping of production and creating new workplaces, - to decrease obligations of companies while paying VAT, by means of increasing term of payment of bill while importing equipment, its components and materials, - to exempt from paying VAT on fixed assets, being contributed as investment to the authorized fund, - to implement the mechanism of economic encouragement when establishing new workplaces. Car makers rely on the State support to the branch - on approval of the State program on developing automobile industry and regulating car market, on development of mechanism on reducing the price of credit recourses till the level, valid in European countries, implementation of the State efficient guarantees of the Legislation stability and export promotion. Chairman of Supreme Rada of Ukraine, Mr. Аrseniy Yazenyuk, noted, that he is ready to insist on providing the Zaporozhye Automobile Building Plant "ZAZ" favourable financial conditions for production development. "If we want to promote science and support the company, we have full authority to finance scientific developments of this company. I guess, both the government and the branch Ministry should concern itself with this matter", - said Mr. Arseniy Yazenyuk. He is sure, for his turn, that the following two demands should be laid down to the CJSC "ZAZ": transition to European standards and considerable decreasing power consumption by transport means, produced by this company