National Bank of Ukraine proposes imposing extra duty on non-critical imports

MOSCOW. June 2 (Interfax) - The National Bank of Ukraine (NBU) has proposed introducing an extra import duty on non-critical imports in addition to reinstating the general taxation of imports, NBU Deputy Governor Yuriy Heletiy said.

"We should first reinstate the taxation of imports, and we hope the parliament will implement this initiative, and also impose an extra import duty on non-critical import categories," Heletiy said at a press briefing in Kyiv on Thursday.

Ukrainian media said with reference to Heletiy that the steps proposed would stimulate budget revenues, help support local producers, and relieve pressure on the currency market.

NBU Deputy Governor Serhiy Nikolaichuk said the critical import system worked well during the first months following February 24, when it helped reduce the demand for foreign currency in certain sectors.

"But when the economy started recovering, this mechanism began to slow down its recovery," Nikolaichuk said.

"This is precisely what prompted the Economy Ministry to add numerous positions to the list of critical imports," he said.