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30.06.2010
Credit-Rating: VAT-Exempt Residential Property Transactions as Step to Recovery In Construction
Credit-Rating believes that the exemption from value added tax on residential property may lead to certain decrease in home prices yet will have no significant impact on revival in construction activities. In Credit-Rating’s view restoration in volumes of construction works may occur only after increase in population’s purchasing capacity, renewal of banks’ mortgage lending, and lending to construction companies.
According to Andrey Kulik, a Credit-Rating’s Head of Corporate Sector, under existing economic environment this rule of taxation is of deferred nature and is going to affect the market in long-term perspective, i.e. on the stage of recovery.
The rule of VAT exemption on transaction of primary sale of residential premises was passed by Verkhovna Rada in the first reading on June 17, 2010 in the Tax Code draft.
Credit-Rating agency has operated in the Ukrainian market since 2001 being committed to assignment of the national scale ratings. The agency has assigned 1084 credit ratings. As of June 1, 2010 Credit-Rating maintains monitoring of
635 ratings, in fact 492 of corporate, 96 of financial and 47 of municipal sectors.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and
analytic department
Sergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
