In the media Ukraine has information on the likely price increase on condoms and diapers in connection with the introduction of VAT. But experts predict that the prices will turn quite another party, importers before supplying contraceptives in the country at inflated prices. If the selling price of the manufacturer for the packaging of condoms is equal to 0.2 dollars, then they are implemented at a price of $ 2 per package, i.e. with 1000 percent markup. Even when allocating costs to transport the profitability of this business is extremely high. The same situation on the market of diapers, the margin here is not so high, but the income from them is quite high.
Therefore, the expert believes that VAT will not increase the final cost of the products. Importers can pay 20% tax without damage to the business, because the markup is almost a thousand percent. Oh and also to reduce the amount of VAT vendors likely will reduce the market value of condoms.
The payment of VAT on condoms is practiced all over the world, so Ukraine will come to the common practice.
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Currently in Ukraine sold condoms 43 manufacturers, including Chinese, Russian, Japanese, Thai, Korean and condoms from the United States,