The Cabinet is proposing a new mechanism for reimbursing the value added tax, Prime Minister of Ukraine Arseniy Yatsenyuk stated in the Verkhovna Rada.

He noted that the government’s debt regarding the value added tax is USD 21.7bn. He also said that the government is against issuing treasury promissory notes, so this tool will be eliminated. Yatsenyuk said that the government has no money for refunding VAT.

“We suggest that every company that has a non-refunded VAT is publicly and transparently issued not a promissory note but government bonds guaranteed by the state, with which the businesses will go to banks and get cheap loans,” he said.