Photo from UNIAN
Head of Ukraine's State Fiscal Service Roman Nasirov says that the tax rate on individuals' income can be reduced by 1 percentage point to 17% even from now on.
"In my opinion, if we want to motivate people, giving priority to drawing salaries out of the shadows, it is necessary to speak now, amid the achieved results, about a reduction in personal income tax. [It should be cut] by one percentage point at least. [It could be done] even now," Nasirov told journalists.
In his words, lowered rates of tax on individuals' income can reduce the share of the shadow market and will let the authorities fill in the coffers.
Read alsoFiscal chief expects additional UAH 70 bln from deshadowing of Ukraine’s economy"We should provide incentives, and theoretically it would be possible to talk about 15%. But I am sure that even with 17% the 'unshadowing' would be faster and we would collect more budget revenue in absolute terms," Nasirov added.
UNIAN memo. Ukraine taxes most of personal incomes at 18%, which was fixed in 2016.
On January 1, 2017, the minimum wage in Ukraine doubled, to UAH 3,200, or about US$119, per capita per month. According to government estimates, this would boost tax payments from wages. However, experts are concerned that such a move may cause further growth of shadow employment.