VAT in Crimea to be reduced 5 times. Starting May 1, the State Council of the Crimea set the new rates of value added tax between 2 and 4%.

      The corresponding decision was taken on Wednesday at the extraordinary plenary session of the Parliament of the Republic. 4-percent tax will be set as the main VAT rate, the 2-percent for socially important goods, including food, children's clothes, publications and also medicines of domestic and foreign production. Earlier, it was proposed to lower 20-percent VAT rate to 18 and 10%, respectively.

      Crimean deputies hope that applying new VAT rates will ensure stable economic situation of the business during the transition period; will preserve existing jobs; will ensure a stable flow of taxes to the budget and will support the competitiveness of Crimean producers and their solvency.