Yatseniuk: Talks with IMF on single social contribution not easy

15:32, 11 December 2014
Politics
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Ukraine’s talks with the International Monetary Fund on cutting the single social contribution rate from 41% to 15% are not easy, Prime Minister Arseniy Yatseniuk said on Thursday during his speech in parliament. 

REUTERS

"Now we are holding long discussions with the IMF on this issue, because there is no easy solution to it,” Yatseniuk said.

“The current rate is 41%, we are suggesting to gradually reduce it to 15%,” Yatseniuk said.

“My suggestion had been to set it at 15% at once. But our international lenders are concerned about the great risk for a state devoid of such a significant revenue base."

Yatseniuk said that by cutting the rate, the state may incur losses of UAH 30 billion.

As UNIAN reported earlier, on December 9 the Cabinet of Ministers approved the program of its activities for 2015-2016, the main objective of which is to bring Ukraine’s prospects as for the EU membership as close as possible. The program foresees the implementation of reforms in the areas of defense and security, as well as judicial reform, tax reform, changes in approaches to state property management, and a number of innovations in the social sphere in terms of monetization and targeted benefits.

In addition, in the first quarter of 2015 the Cabinet of Ministers intends to amend the tax code and reduce gradually single social contribution rate from 41% to 15% and reduce by half the single tax rate for entrepreneurs working on a simplified system of taxation.

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