Photo from UNIAN
The move is aimed at providing incentives for creating jobs, increasing salaries, and reducing unemployment.
Ukrainian Minister of Economic Development, Trade and Agriculture Tymofiy Mylovanov has proposed that the single social security contribution be abolished, individual income taxes reduced, and other taxes revised to "remove from the agenda" the issue of individual entrepreneurs, provide incentives for job creation, and increase in salaries.
"Taxes and individual entrepreneurs. This post is an invitation to a discussion about tax system we need, rather than a proposal for tax changes. In my opinion, the people is Ukraine's most important economic asset. Therefore, it is desirable that taxes stimulate new jobs and lead to higher salaries," he wrote on Facebook on October 27.
To this end, labor taxes should be minimized, while taxes on assets (for example, real estate) be increased. At the same time, he said that the value-added tax (VAT) should remain.
"I realize that it is impossible today, but I would consider such a tax reform," he said.
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The minister proposes an increase of property tax and land tax, as well as taxation of other assets, to compensate for the abolition of the single social security tax and maximum reduction in individual income taxes.
In addition, the minister invited to improve collection of taxes on real estate and other assets, including VAT, and to continue the process of economy de-shadowing by direct and indirect methods, as well as to provide government support for businesses only if they work in the legal field and create enough jobs.
"All these eight points are being proposed for discussion. The idea is to remove from the agenda the issue of individual entrepreneurs, provide incentives for creating jobs, increasing salaries, and reducing unemployment," the minister summed up.
As UNIAN reported earlier, the Ukrainian Ministry of Economic Development, Trade and Agriculture in its updated macroeconomic forecast for 2020 assumes that Ukraine's GDP growth may reach 3.7% (the base-case scenario) or 4.8% (the best-case scenario).