The Finance Ministry proposes five steps in the decision of the tax reform

Минфину предлагают пять шагов по решению налоговой реформы

Enterpreneuer offer an alternative tax reform of the Ministry of Finance

The former Minister compared the Finance Ministry’s proposals with an alternative tax code designed for entrepreneurs.

Former Minister of revenues and duties Oleksandr Klymenko has compared the tax reform of the Ministry of Finance with an alternative tax code, which his political force is developing together with predprinimatelei.

“For example, according to the project of the Ministry of Finance, in the case of legal entity-payment of taxes or fines, fiscal service without recourse to the court would conduct penalties by cash or with Bank accounts. This leads to the fact that businesses will not be able to pay salaries, travel expenses, pay for raw materials until, until they pay the tax debt. This innovation from the government will drive the business into the shadows, forced to move to a barter transaction or will lead to bankruptcy”, – writes the article Klimenko.

There is a “good” news and to individuals. “For example, if a person from despair, was looking for a one-time gig, he will have to be registered in the local authority or Supervisory authority. He also will be required to pay upfront tax in the amount of 10% of the minimum wage (in 2017 is 160 hryvnia per month). Moreover, if the Ukrainian will not be able for some reason to engage in individual activities, the tax is not returned”, – the politician explains.

As an alternative to bills of the Ministry of Finance Klimenko recalls that at the fora were developed by the new tax code.

Alternative tax code, in particular, provides for reduced tax rates. “In our Tax code, we propose to reduce VAT from 20% to 15% profit tax from 18% to 10%, payroll taxes from 41.5% to 25%,” writes Klymenko. According to him, this measure will increase revenues and become a positive signal for investors.

“Second, the simplified tax system should continue to evolve based on actual business needs,” writes the former Minister.

Thirdly, according to Klimenko, excellent support from the state is always non-intervention.

Alternative tax code also is a moratorium on inspections of new businesses within three years; increasing the tax liability of employees for abuse of authority, including the unauthorized unscheduled inspections.

It is also proposed to reduce the VAT rate for socially important goods to 5%.

It is equally important to restore the law on transfer pricing, said the former Minister.

Earlier, the Minister criticized the tax reform of the Ministry of Finance, noting that it will hit the pockets of Ukrainians.