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Ukrainian President Petro Poroshenko has said he remains dissatisfied with the progress of salary legalization in Ukraine, the presidential press service told UNIAN referring to the president's statement at a meeting of the Regional Development Council.
"We took a very difficult decision regarding a significant reduction in single social contribution, anticipating that businesses would fully channel their savings from the underpayment of tax to their employees. So far, in most cases, salary increases do not exceed the amount of savings businesses have derived from the reduction in the tax burden on salaries, but the process is already underway, and I am confident that we can improve this situation," the press service quoted Poroshenko as saying.
Read alsoWill IMF's latest tranche become last for UkraineAs UNIAN reported earlier, in late December 2015, the Verkhovna Rada adopted amendments to the Tax Code of Ukraine, establishing a unified rate of single social contribution at 22%, compared with the previous rate of 41%. Personal income tax rate was increased by three percentage points to 18%.
Payments of single social contribution to the budget in January-June 2016 amounted to UAH 73.3 billion, or 100.6% of the target figure for the current year, according to the State Fiscal Service.