You're reading: Fiscal service estimates VAT refunds debt at Hr 12 billion, offers new issue of VAT bonds

The State Fiscal Service of Ukraine, to resolve the problem of the state's debt on VAT refunds, which exceeds Hr 12 billion, has proposed a new issue of government domestic loan bonds (VAT bonds).

“For the sake of restoring balance in the economy and support to businesses, we need once for all to resolve this issue,” service head Roman Nasyrov said.

According to him, to repay a large amount of accumulated debt on VAT refunds, the Fiscal Service has appealed to the Finance Ministry with a proposal to issue government bonds.

According to the service, the debt on VAT refunds to steelmakers is more than Hr 7 billion. The largest debts are those owed to ArcelorMittal Kryviy Rih – Hr 1.4 billion, Mariupol-based Illich steel mill – Hr 1.1 billion, Azovstal – Hr 860 million, Zaporizhstal – Hr 720 million, Dzerzhynsky Metallurgical Plant – Hr 911 million.

In addition, the debt owed to farmers has reached nearly Hr 4 billion, to other enterprises, among which is Odesa port-side chemical plant, the debt has reached more than Hr 1 billion.