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 Minister Jaresko: Tax reform would help avoid budget deficit of UAH 68 bln

The tax reform submitted by the government would help avoid 2016 budget deficit of at least UAH 68 bln (about $3 bln), as well as continue the reform program supported by the International Monetary Fund.

As reported by Censor.NET citing UNIAN, Finance Minister Natalie Jaresko said at a meeting of the U.S.-Ukraine Business Council.

Read more: Ukraine's GDP to grow by two percent next year, Finance Minister says

"If we leave the situation as is without any changes, we will have to find additional UAH 68 bln to cover the budget deficit. In addition, if we do not solve the issue of VAT payment to agricultural sector, we will drop out of the IMF reform program," she said.

According to Jaresko, agricultural business is the most vivid example of the distortion of taxpaying in Ukraine.

"We stand for a single working environment, in particular for agricultural business. Therefore we are elaborating a support system for agricultural enterprises. We need to support small and medium agricultural business," Jaresko said.

Earlier, the Ministry of Finance, discussing Ukraine's tax reform, proposed to cancel a special mode of VAT payment for agricultural businesses at a zero rate but did not set a clear date for a corresponding decision to be taken.

Read more: G7 Ambassadors make joint statement on Ukraine's tax system reform

Later, the Finance Ministry suggested considering cancellation of the benefits by 2016 - as required by the government's reform program supported by the International Monetary Fund, Ukraine's key creditor.

At the same time, the Ministry of Agrarian Policy and Food said it would insist on keeping the benefits for farmers.
 
 
 
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