Import duties will be abolished from January 1, 2016.
Additional import duties will be abolished from 1 January 2016, as planned when administered, specified in the Ministry of Economic Development and Trade, referring to the Minister Aivaras Abromavicius.
“As a result of recent meetings with representatives of the National Bank of Ukraine, the Ministry of Finance and the WTO, there is a consensus to cancel the additional import collection from 1 January 2016, as planned earlier,” – said the Minister.
According to the Ministry, the additional import duties was part of the overall macro-economic package of measures to improve the situation with balance of payments: drop in world prices for traditional products of Ukrainian exports – ferrous metals and products, fertilizer, grain, etc.. – against the background of a significant export orientation of Ukrainian economy it has led to a deepening recession and macroeconomic imbalances. In particular, the current account deficit of the balance of payments at the end of 2014 was $ 5.3 billion or 4% of GDP. A consolidated deficit of the balance of payments increased to $ 13.3 billion, or about 10% of GDP.
“Preliminary results of the effectiveness of the collection of evidence of a positive impact on the achievement of macroeconomic stability in the country. These measures have improved the balance of payments and help to mitigate the shock effects of the turbulence of foreign markets, which are observed today,” – said the Ministry in a statement.
In January-February, the current account deficit was $ 600 million, then in March-June, the current account recorded a surplus – $ 616 million. By the end of June current account surplus increased to $ 361, and for the first time since the beginning of the year foreign trade balance was positive.
According Abromavicius, the overall economic effect of the additional import duties estimated to be worth up to $ 1 billion due to the decline in imports.
