Losses from duty-free import of oil can reach UAH 20 billion in 2012 - expert
2011-11-30 16:41:25
Total loss of Ukraine's budget from duty-free import of oil by Naftogaz of Ukraine and operations on the sale of this oil to refineries, as well as the sale of oil products made of it will make up about UAH 20 billion (USD 1/UAH 7.99) in 2012, Deputy Director of Scientific-Technical Center Psichea Hennady Riabtsev told a press conference in Kyiv.
"If in 2012 the volume of oil import is at the level of 2010, total losses from duty free import of oil by NJSC Naftogaz of Ukraine and the first sale of oil products, received from this oil, will make up about UAH 20 billion," Riabtsev said. At the same time, according to him, only direct losses of the budget from oil import will be UAH 4.4 billion.
According to President of the Association of Oil Products Market Operators Leonid Kosianchuk, exemption of NJSC from taxation in oil import and fuel sales may lead to monopolization of oil and oil products market by Naftogaz of Ukraine. "It is clear that nobody can compete with the NJSC exempt from taxes and in several months the sphere of oil and oil products supply will be fully monopolized by this company," Kosianchuk said.
He added that under such condition, legal supplies of imported oil products will be unprofitable, as well as domestic oil production.
Kosianchuk also noted that granting preferences (abolishment of VAT for oil import - Ed.) to all companies, working on the Ukrainian market, would allow to economize about USD 16 billion of working assets and to increase oil processing at Ukrainian oil refineries. "We would increase raw oil processing, as well as achieve reduction of prices for oil products in Ukraine," Kosianchuk said.
November 17, Energy and Coal Industry Minister Yuriy Boiko stood with an initiative to submit for the Parliament's consideration, as top-priority, the project for making amendments to the Tax Code for ensuring duty free import of oil by NJSC Naftogaz of Ukraine. Currently, according to Ukrainian mass media, this draft law was postponed for an uncertain period due to its non-urgency.