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 Ukrainian Politics, Economics
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 Tax system must stimulate economic growth and be clear for taxpayers, Poroshenko says

President Petro Poroshenko emphasized the need to prevent the reduction of social benefits, especially pensions, in the course of the implementation of tax innovations.

It was stated by the president at the National Council of Reforms, Censor.NET reports citing presidential press office.

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

The president noted that the tax policy must stimulate economic growth and the result of the tax reform should be the system of taxation that will be clear for taxpayers, easy to administrate and harmonized with the EU requirements. At the same time, payment of taxes must become an imminent duty of taxpayers.

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Among the most acute problems of business, the president called burdensome administration of taxes, instability of tax legislation, high fiscal pressure on the payroll fund, shadow economy and smuggling that result in an obviously non-competitive environment for the taxpayers. Also, the president 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 Hroisman and Deputy Head of the Presidential Administration Oleksii Filatov to consider the issue of judicial reform at the next session of the Constitutional Commission. According to the president, the judicial reform must be aimed at building a fair trial.

The head of state noted that the tax reform must be decisive, but it should provide an opportunity for business to adapt.

The president stressed the importance of creating efficient stimuli for payroll "deshadowing". "The level of taxation shouldn't hinder the economic development and the creation of new jobs," Petro Poroshenko said.

The president believes that it is necessary to introduce taxation of wealth and luxury.

Read more: Minimum wage to be untaxed effective 2016, - Deputy Finance Minister

The head of state drew special attention to the taxation of small and medium business. "Simplified tax system - it is not a whim. It provides for the creation of millions of jobs where people have their own workplace. They do not provide significant budget revenues but, at the same time, they do not require budget expenditures for social risks and challenges. It is a real tool for developing small and medium entrepreneurship in the country," the president noted. According to him, single tax and simplicity of administration for the given category of taxpayers must be preserved. 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. We shouldn't force people who trusted us when we made amendments to the Code last year return to the "shadow". I ask government officials and people's deputies to remember the things we then promised to entrepreneurs and keep the word," Petro Poroshenko emphasized.

Also, the president focused on the importance of reformation of the State Fiscal Service. "This agency must provide high-quality services for taxpayers. Its credibility among citizens and business is the key point," the head of state noted.
 
 
 
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