2016 Ukraine budget to be drafted based on old Tax Code

The draft state budget for 2016 will be developed on the basis of an old version of the Tax Code of Ukraine, leader of the Bloc of Petro Poroshenko Yuriy Lutsenko told the reporters.

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"We've reached an understanding," Lutsenko said, referring to an agreement reached between the Ukrainian government, the Verkhovna Rada and factions leaders.

The draft budget and the draft Tax Code prepared by the government will be submitted to the Parliament, according to Lutsenko.

"After that, leaders of the factions will submit their remarks. Meanwhile, the Government, in general, has agreed with our proposal to develop the current budget based on the existing tax legislation," Lutsenko said.

At this, he added that the tax legislation should be partially amended in accordance with the agreement between Ukraine and the IMF, and due to the implementation of certain structural reforms.

"That means we will draft [the budget] not on the basis of a new Tax Code, which was submitted by the government, in line with the old Tax Code, which will be finalized to address in detail the so-called Yuzhanina's draft," Lutsenko said, referring to the draft of the Tax Code amendments proposed by Chairperson of the Verkhovna Rada Committee on Taxation and Customs Policy Nina Yuzhanina.

Earlier, Ukrainian President Petro Poroshenko stated the state budget for 2016 would be based on a new tax base.

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