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 Yatseniuk urged business to come out of the shadows

Prime Minister of Ukraine Arsenii Yatseniuk called on the Ukrainian business to come out of the shadows and start paying legal wages to employees.

He said this at a government meeting on Thursday, March 10, Censor.NET reports citing the Cabinet's press service.

"Single social tax rate has been halved, and it's a tool. We request business to use this tool, come out of the shadows, and pay legal wages. We have done everything for this," the prime minister said.

Read more: PM Yatseniuk challenges President Poroshenko: 'back me or sack me'

Arsenii Yatseniuk also reminded that last year the government halved the payroll tax. In order to balance the country's Pension Fund and increase pensions by 12 percent during the year, the Cabinet of Ministers of Ukraine allocated UAH 144 billion (approx. $5.38 billion) as direct budget subsidies: "To pay off all pensions as has been the case over the last two years and to have enough money to increase pensions."

This step of the government requires appropriate effort from business and entrepreneurs - legalization of wages.

Yatseniuk once again appealed to businessmen: "We have made our step. We request you to make yours. Because shadow and envelope salaries result in a lack of proper pension maintenance of the Ukrainian citizens in the future as well as lack of social security."

Read more: "Forget scheming and allow government working," - PM Yatseniuk

"Over 20 years, we've had discussions about inflated payroll tax rate in Ukraine. We've halved it. This means that wages should be de-shadowed. This means that people should receive higher salaries because we assumed the funding of the Pension Fund. Eliminating rogue and shadow business will increase budget revenues, personal income, as well as financial resources for entrepreneurs," the prime minister stressed.
 
 
 
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