Finance Minister Nataliya Jaresko and Head of State Fiscal Service Roman Nasirow hold joint press conference on the draft of tax reform proposed by Ministry of Finance

9/7/15

On September 7, the Minister of Finance Nataliya Jaresko and the Head of the State Fiscal Service Roman Nasirow held a joint press conference on the draft of the tax reform presented by the Ministry of Finance on September 3 at the meeting of the National Reform Council. The press conference took place in the building of the Cabinet of Ministers of Ukraine.

In her speech Nataliya Jaresko outlined the current problems of the tax system and commented in detail on the issues which had triggered intense discussions in the society.

«The key defects of the existing tax system are its lack of fairness and complicated regulations which deliver opportunities for manipulations. Some citizens and businesses pay their taxes diligently whereas other payers are dodging them», the Minister of Finance said.

Ms Jaresko said that the Ministry of Finance had been engaging numerous economists, public experts, representatives of business, NGOs, members of the Target team as well as had been seeking advice from international tax experts when working on the draft of the tax reform. Finally, the Target team opted for the linear tax system with flat tax rates, namely 20% for the income tax, 20% for the VAT, 20% for the single social tax and 20% for the profit tax.

In the course of the discussion of the draft tax reform, the key aspects and innovations of the draft tax reform presented by the Ministry of Finance were expounded. These innovations include the reduction of the tax burden on salaries, more fairness in taxation for citizens (including amendments to the simplified taxation system), providing equal terms for all businesses, more active engagement of rich citizens in tax revenues etc.

The Head of the State Fiscal Service Roman Nasirov expressed his support for the presented tax system and pointed out that the State Fiscal Service was strongly interested in the implementation of the most effective mechanism for revenue management and most comfortable tax rates both for payers and for the state budget.

«We managed to find gaps in the tax revenue management, that’s why most of our proposals to the Ministry of Finance related to the tax reform refer to these issues in particular», Roman Nasirov stressed.

In the end of her speech the Minister of Finance again reminded that her objective was to create an effective tax system which would create incentives for investors and for economic growth as well as for employment. At the same time it should secure sustainable and continued funding for the state budget.

«The tax reform is aimed to build up a simple, transparent and fair tax system which should provide fairness, transparency and solidarity to the system as well as stimulate investments, economic growth and employment and also improve the quality of public services for business and reduce opportunities for corruption», the Minister of Finance said.

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