President comments on tax system in Ukraine

The introduction of tax innovations in Ukraine should not lead to reduction in social benefits, especially pensions, President of Ukraine Petro Poroshenko emphasized when speaking at the National Council of Reforms, presidential press service reported.

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"Tax reform can't be implemented at the cost of pensioners and socially vulnerable groups of people," Poroshenko said.

The President noted that the tax policy must stimulate economic growth and implementation of the tax reform should be transformed into the system of taxation that is clear for taxpayers, easy to administrate and harmonized with the EU requirements. At the same time, payment of taxes must become an unavoidable duty of taxpayers.

Among the most acute problems of business, according to the President, are burdensome administration of taxes, instability of tax legislation, high fiscal pressure on the payroll fund, shadow economy and smuggling, which results in an obviously non-competitive environment for taxpayers. Also, Poroshenko noted that business suffers from the aggression of the neighboring state and the weakness of the judicial system. The President urged Chairman of the Verkhovna Rada Volodymyr Groysman and Deputy Head of the Presidential Administration Oleksiy Filatov to consider without delay the issue of judicial reform at the next session of the Constitutional Commission. According to the President, the judicial reform must aim at establishing a fair trial.

The President stressed the importance of creating an efficient stimulus for payroll "deshadowing." The level of taxation should not hinder the economic development and the creation of new jobs, according to the Ukrainian President.

The President believes that it is necessary to introduce taxes on wealth and luxury goods.

The head of state drew special attention to taxation of small and medium business. According to Poroshenko, single tax and simplicity of administration for the given category of taxpayers must be maintained. The President also supports the idea of zero restrictions for individual entrepreneurs and small businesses in terms of cooperation with both individuals and legal entities.

"We must guarantee that we will make no innovations in hindsight. We will have an open and fair dialogue with business," the President said.

"Small and medium business either implements the principle of self-employment, or creates jobs, which is essential today," Poroshenko said and added, "I ask government officials and people's deputies to remember the things we then promised to entrepreneurs and keep the word."

As UNIAN reported earlier, the tax reform in Ukraine entered into force on January 1, 2015, with a number of taxes being reduced from 22 to 9. 

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