BUSINESS IN BRIEF (01/03/99)

BUSINESS IN BRIEF

20,000 fictitious firms are uncovered

KYIV - The State Tax Administration has uncovered 20,000 fictitious foreign trade structures. According to STA head Mykola Azarov, a total of 2.5 billion hrv was not returned to Ukraine during the first 10 months of 1998. He said that the number of shadow bodies uncovered was only a tenth of the actual number. Mr. Azarov also reported that currency exchange points received a total of 20.75 billion hrv during 1998, but as of October 1 they had reported the use of only 405 million hrv. During the first 10 months of 1998, small and medium businesses paid 178 million hrv in taxes. (Eastern Economist)

Tax incentives in place for innovative companies

KYIV - The Verkhovna Rada on December 1, 1998, amended the law on taxation to introduce an investment tax incentive. The incentive takes the form of a delay in payment of company profit tax. It is available to businesses that aim at increasing their financial resources to implement innovative programs. Further incentives in the form of favorable tax terms on increased profits resulting from implementation of the innovations also are scheduled. (Eastern Economist)

New electronic locks made in Ukraine

ODESA - Serhii Popov, chair of CLS, on November 9, 1998, presented its latest product, the Cassette Lock System, a mechanical door lock operated with a plastic card the size of a credit card. The lock is the first of its kind in the world. Patented in Ukraine, Europe and the U.S., all components, except the plastic cards themselves, are produced in Ukraine. (Eastern Economist)

Viagra gets clearance in Ukraine

KYIV - Ukraine became the 71st country in the world to officially approve the sale of Viagra anti-impotence tablets, it was announced on December 9, 1998. According to official statistics, out of 26 million men in Ukraine, 1.7 million suffer from impotence. The scientists behind the drug received a Nobel Prize for their efforts. The black market price of one Viagra pill in the West is around $10 (U.S.) (Eastern Economist)

Computer giant to manufacture in Ukraine

KYIV - Universal Trading Corp. on December 10, 1998, announced plans to start manufacturing computers in Ukraine. According to UniTrade's Volodymyr Kolodiuk, the firm will produce both personal computers and professional workstations. The company was founded in 1993 and has 20 regional offices and 50 dealerships all over Ukraine. (Eastern Economist)

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