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Unstable tax law is a painful issue for Ukrainian business

Unstable tax law is a painful issue for Ukrainian business

87.5% of Ukrainian companies consider the instability of tax legislation a major problem for business development in Ukraine. This was stated by the Deputy of the Finance Minister of Ukraine Elena Makeeva. She said these words during the press-briefing in the Ukraine Crisis Media-Center.

 

Businessmen named the high tax burden on the wage fund and a high share of the shadow economy the second obstacle in the development of the economy. Uneven tax burden, the situation with the reimbursement of the VAT, the absence of the long-term excise policy and the existence of import duties were also named problem areas of the Ukrainian business. These data are generalized. They were obtained as a result of the work of the industrial communication platforms on reformation of the tax system.

 

Communication Platform is the format of discussions initiated by the Task Team on the reformation of the tax system. Such discussions held under the auspices of the National Council of the reforms. Communication Platforms have been held this year from April to June. Discussions were carried out in two directions:

  • industries – here the organizers attracted businessmen working in various fields of the industry;
  • open sector – here the organizers attracted the independent experts, scholars and public figures.

The results of the work of the industrial communication platforms have become the basis for the formulation of tax reform priorities. These priorities were presented in the Ukraine Crisis Media Center.

 

‘The aim of the industrial communication platforms was to investigate the key issues faced by the business. These researches should determine the purpose of the reforms. We must start from the fact – what our business is waiting for’, – the Deputy of the Finance Minister of Ukraine said.

 

Participants of the industrial communication platforms have built a number of options for solving formulated problems. These options are under active discussion now. ‘To solve the painful problems of business related with the instability of tax legislation, we initiate a moratorium on changes in tax legislation. We don’t know how much time this process takes’, – Elena Makeeva said. In addition, the Ministry of Finance will support the idea of reducing the tax burden on the wage fund. We work on combining a single social contribution and income tax. Import duties may be abolished in January next year.

 

The Deputy of the Finance Minister noted that in the near future the results of the work of the open platforms would be compiled and presented. They already have formed 14 models of reforming the tax system of Ukraine.

 

Elena Makeyeva added: ‘On the next week the task team will discuss the various options for the revision of tax rates and their effect on the budget. In September we plan to submit to the Verkhovna Rada a new draft of the Tax Code’.

Source: Ukraine Crisis Media Center


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