Government Approves Changes to Tax Code

The Cabinet of Ministers of Ukraine at an extraordinary meeting approved a draft law amending the Tax Code of Ukraine.

"The main purpose of these changes is to ensure the balance of budget revenues. We plan to achieve this by combating tax evasion schemes, creating a transparent, competitive environment, improving the efficient use of economic resources of the country", - explained during the presentation of the draft law Minister of Finance Sergii Marchenko.

The Tax Code entitles the Government to submit to the Parliament, if necessary, by June 1, a draft law on tax rates defined in absolute values (excise tax, environmental tax, and rents), taking into account consumer price indices, producer price indices of industrial products.

Such changes are aimed at facilitating and balancing the budget revenues. The adoption and implementation of the provisions of the draft law will contribute to additional budget revenues of more than UAH 60 billion a year by:

• Bringing the absolute values of the size of tax rates in line with the actual level of macro indicators;
• Improving the efficiency of fee for the use of mineral resources and excise tax;
• Combating tax frauds;
• Increasing the completeness of tax payments and efficiency of tax debt administration.

The draft law also contains several provisions aimed at improving the business climate. Also, for entrepreneurs and citizens, the draft law proposes an exemption from personal income tax for state support received not directly from the budget, but from the Enterprise Development Fund (state programs "Affordable Mortgage 7%" and "Affordable Loans 5-7-9%").