Serikov on VAT: bill will simplify tax administration and make pricing transparent

Sukhum. November 11. Apsnypress. Elena Poluyan. The bill discussed representatives of the Presidential Administration of the Republic of Abkhazia, Government, Commerce and Industry and the RA Control Chambers.

Presenting the bill, Deputy Prime Minister Dmitry Serikov noted that the document primarily aimed at eliminating discrimination against domestic producers. Thus, under the old law, VAT is charged on the full value of goods produced in Abkhazia, while for imported products - only added value. Which significantly reduces the competitiveness of domestic goods. According to him, firstly, the difference between the new bill is that there are not just goods under the taxation, but also services. And secondly, benefits and clearly itemized tax deduction mechanism. "VAT supposed to charge at each stage of the production or sale of the product", - Serikov said. However, he stressed that essential goods, medicines and fuels will be exempt from VAT. The corresponding list of tax-free goods must be approved separately. Thus, the charging tax on goods is not included in the list of socially important, VAT will act as a kind of "tax on luxury". In general, the bill will simplify tax administration and make pricing transparent", - said Dmitry Serikov. 

The discussion of the draft law was on several fundamental issues. The first one: whether to exempt from VAT fuels and lubricants?

Thus, Almas Dzhapua noted that petroleum products should not be exempted from VAT, since the government controls fuel prices and, consequently, increase the cost of gasoline can be avoided. Aslan Kobakhia also suggested inadmissibility exemption of gasoline wholesalers. We at the expense of gasoline, cigarettes, scrap, retained our statehood in the 90s. If these items were not duty, the state budget would be empty at the time. The government regulated prices. And I just do not believe that the government had no collusion with suppliers of fuel, they do not accidentally fell under the VAT. Powered certain lobby group! But it is necessary to say "Stop" , include integrity, understanding in this matter. Abkhazia is not a field for sloppiness!", - Kobakhia said. The same view was supported by Ahra Bzhaniya: "Fuel is not drugs, not products for children. Turnover in this area is more than 2 billion rubles, and the state gets tax just over 100 million. Similar momentum in the communications sector, but it taxes account for more than 500 million. At the expense of someone else's excess profits the rights of the citizens can not be restricted". 

Another, no less important topic that was discussed - Whether the prices will rise in the country with the introduction of VAT? Such a question was asked more than once. At the same time, Deputy Economy Minister Ahra Aristava said: "When changing the tax system, will attempt to raise prices. Entrepreneurs must adapt to the new tax. But we must take into account, because they could stay and trade. After a quarter of businesses will get used to stabilize prices", - he said. According Aristava, with the adoption of the law, market prices can rise by 5%.

In general, the opinions on the rise in prices after the VAT input divided. If a representative of the Ministry of Economy in this context referred to a figure of 5%, Deputy Prime Minister Dmitry Serikov - 10%, the Committee's Chairman Georgi Agrba by performing calculations on the board, brought the figure of 13%, and according to the deputy chairman of the Chamber of Commerce Adgur Lushba, increase will happen by 15%.

Adgur Lushba stressed: "The introduction of the law must not impair the conditions of activity of small and medium entrepreneurs. Since, with a population of 243,000 people, only 40,000 are involved in the private sector and 10,000 engaged in business. And these 10 thousand people provide goods for all others.