Ukrainian govt and Office of President decide not to impose extra 10% import duty - MP

MOSCOW. Aug 31 (Interfax) - Even though it has been agreed upon, a bill introducing an additional 10% import duty in Ukraine will not registered in the parliament, because the Office of the President has scraped this idea, Ukrainian media quoted the deputy chairman of the Verkhovna Rada's Committee on Finance, Tax and Customs Policy, Yaroslav Zheleznyak, as saying.

"The reason why it has been rejected is considerable public pressure and resistance from business," Zheleznyak, who is a member of the Holos faction, said on Telegram.

Zheleznyak also thanked business associations for promptly reacting and for presenting their counterarguments.

It is highly unlikely that this idea will be revisited, he said.

For several months, the National Bank of Ukraine has been touting the idea of introducing an additional import duty in order to improve the balance of payments and to mitigate pressure on Ukraine's international reserves.

Zheleznyak said earlier that the government, in turn, "has chosen not to impose additional import duties in Ukraine, but to introduce a 10% fee on currency exchange operations for the purchase of all imported goods and services."

This proposal has actively been opposed by business, which has listed among its potential consequences a considerable growth of the shadow market, along with higher prices for imported raw materials and components.