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Ukrainian PM presents tax reform and offers to get "fishing rod instead of fish"
07.08.2014 09:14 "Agro Perspectiva" (Kyiv) —
The Ukrainian Government has proposed a plan of comprehensive changes in the tax system, Government Portal reports.
As to the report, the tax reform has been presented by the Ukrainian PM Arseniy Yatseniuk at a Cabinet meeting on Wednesday, August 6. The PM has invited to reduce the number of taxes and fees from 22 to 9, substantially revising the taxation of profit, payroll, and agricultural enterprises and simplifying tax administration.
The PM has informed that the Cabinet has developed a plan for economic growth: «We believe that the Parliamentshould adopt a law on economic growth in September, which includes the tax, single social tax reforms as well as the abolition of the tax police. This is the first package that Ukraine needs for its development.»
Arseniy Yatseniuk has noted that the current economic model in Ukraine is based on the premise that everyone is given a fish: «However, this fish smalls bad, has been frozen for several times and look like a Soviet-style hake. Weinvite everyone to get a fishing rod with a good coil and a large fishhook, which will enable to catch a big and high-qualityfish.»
The Prime Minister said that the key problem of the Ukrainian tax system is the number of taxes, the system of their administration as well as tax rates. To solve these issues, the Government of Ukraine offers a comprehensive plan for changes in the tax system.
Today, there are 22 taxes paid by entrepreneurs. The Government proposes to leave only 9 taxes.
Besides, the Cabinet has also proposed to discuss a model of VAT reforming in the agricultural sector.
«We know that the Parliament has a serious agricultural lobby, and for this purpose we are ready to discuss the tax reform in the agro sector with the Parliament of Ukraine,» he added.
The Prime Minister has noted that the change in a tax regime of agriculture sector will change the state support of this industry: «I believe that in 2015 the main element of support for agricultural enterprises should be the compensation of the interest rate on loans received. This is the most transparent and effective mechanism.»
«By the end of this year we should have up to UAH 0.5 billion for the compensation of interest rates. In 2015 we will provide a more significant amount of money in order to compensate for farmers interest expenses related to attraction of credits,» Arseniy Yatseniuk emphasized.
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