Cancellation of VAT on construction work would resume market and reduce prices
This was stated today, 11 June, at a press conference in "Interfax-Ukraine" with participation of Deputy Minregionstroya Dmitry Isayenko, Chairman of the Board of Directors of UBA Lion Partskhaladze and vice-president of the Construction Chamber of Ukraine Stanislav Stashevsky.
In his speech, Dmitry Isaenko said Minregionstroy and the Cabinet of Ministers of Ukraine are making great efforts to restore the building industry and its exit from the crisis. This includes consideration by parliament on June 9 of the draft Tax Code, under which MPs released from VAT for building work in the construction of housing.
Mr Isaenko assured that from January 1, Code will come into effect.
"The cost of housing up to 50% reach the load in the form of taxes (5%), permitting procedures, land value, - said Dmitry Isaenko. And our task - to reduce these costs.
Dmitriy said from 1 July will finance affordable housing program.
According to Mr. Isayenko, for a quarter of this year slowed the decline in construction, increased input objects into operation at 3%.
Chairman of the Board of Directors of UBA Lion Partskhaladze said that UBA fully supports the initiative of the Government. "This is a truly revolutionary solution that will help reduce the cost and the cost of economical housing in the 30-50%. Construction costs will be reduced by 10% ", - said Mr. Partskhaladze.
"But without a national program for the construction of economical housing and public enterprises, which have assumed the issues of land allocation, a simplified scheme of the coordination of projects, cost-effectiveness at the level of 3-5%, these issues will be difficult to move", - said Leo Revazovich.
Vice-President of the Construction Chamber of Ukraine Stanislav Stashevsky said that 250 organizations are members of the BPA, support the Government`s exemption from VAT.
Regarding the program of economical and affordable housing, Mr. Isaenko reported that the Kiev regional state administration has allocated plots of Boryspil, in Vyshgorod and Makarovskyy areas for the construction of affordable housing.
UCA has developed a program for the construction of model housing "housekeeper" for needy families. This will be a model home built with economical materials for new technologies (monolithic frame construction, LED lighting, modern heating) to the minimum requirements for living (4 floors, no elevator, parking area 25-70 sq.m, price for 1 square. m - from $ 400). This will reduce the cost of up to 10%.
Above all, the state will act as guarantor and to provide soft loans with an initial contribution - 30% of the cost.
Leo Partskhaladze believes that 7-10 years will be to solve the housing problem of the Ukrainians.
Representative Minregionstroya and colleagues agree that to restore order in the construction industry need a lot of changes and reforms, the adoption of norms and standards in the construction industry.