Tax Ministry Proposes To Increase Period Of VAT Reimbursement To Exporters

The Tax Ministry of the Russian Federation intends to increase the period of VAT reimbursement to exporters to six months beginning January 1, 2002. Tax Minister Gennady Bukayev declared this at a press conference in Moscow today. According to him, a relative document will be submitted to the Finance Ministry in the near future with its further consideration by the government. The current period of VAT reimbursement, i.e. three months, makes it impossible for the ministry to check exporters. As a result, the amount of VATs subject to reimbursement increases more rapidly than the volume of exports, he added. At the same time, the ministry proposed to speed up the reimbursement process for "traditional" exporters from three to one months. If an exporter appears to be a swindler, the process of reimbursing his VAT money will be postponed for an undefined period of time until the investigation is completed. But in case if he proves his export activities, the government will reimburse his VAT payments with interest, Bukayev stressed.