REUTERS
The official has noted he expects the law will be adopted as early as this year.
The Ministry of Finance of Ukraine supports the introduction of an exit capital tax for businesses instead of the profit tax, at the same time insisting on approving clear compensators for lower revenues of the state budget at the first stage of its launch.
"The position of the Ministry of Finance is that we support and will be passing it [the bill on imposing the exit capital tax], but after a clear approval of compensators," Finance Minister Oleksandr Danyliuk said, speaking at a public discussion with the businesses.
The official noted he expects the law will be adopted as early as this year.
According to Danyliuk, the ministry is now working to find the compensators in question. "We are working on these compensators, but not everyone will like them. I don't want to cut spending on healthcare or education. I want to cut the budget of the Prosecutor General's Office, SBU's economic units, but do I have an influence over these expenditures? This is the decision of the National Security and Defense Council. For me, it's just 'Lay down 5%.' But that's not how it should be done. We need to cut spending there. This must be a shared responsibility," the minister said.
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Danyliuk added, he doubted that the bill could be adopted before July 1, so, in accordance with the Tax Code, it could not be enforced until next year.
As UNIAN reported earlier, in October 2017, the Cabinet of Ministers endorsed the draft law on the exit capital tax, which assumes the taxation of dividends and earnings equaled to them (rather than income), at 15% and 20%, respectively.
President of Ukraine Petro Poroshenko hopes to introduce the ECT instead of the income tax from January 1, 2019, considering it a non-trivial solution to accelerate economic growth.
At the same time, Ukraine's key creditor, the International Monetary Fund, opposed the new tax's introduction without due compensation for losses of the state budget.
Experts estimate that the ECT introduction instead of the existing income tax in Ukraine in the first year will lead to a loss of budget revenues in the amount of 1.2% to 1.5% of GDP, which is UAH 37 bln to UAH 47 bln.